d2n2 strategic economic plan

95

Upload: truongthuan

Post on 12-Feb-2017

221 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: D2N2 Strategic Economic Plan
Page 2: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

2

Contents Foreword .............................................................................................. 3

Our Vision for Derby, Derbyshire, Nottingham and Nottinghamshire .................................................................................. 6

Priority Actions .................................................................................. 16 Understanding the D2N2 Economy ............................................... 22

Opportunities and Challenges for D2N2 ....................................... 42 Our Approach and Key Programmes ............................................ 46

Strategic Theme: Business Support and Access to Finance .... 49

Strategic Theme: Innovation ........................................................... 54

Strategic Theme: Employment and Skills ..................................... 61

Strategic Theme: Infrastructure for Economic Growth ............... 68

Strategic Theme: Housing and Regeneration .............................. 78

Governance and Implementation ................................................... 82 Headline Financial Proposals and Match-Funding ..................... 88 Freedoms and Flexibilities .............................................................. 90

Page 3: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

3

Foreword

It’s regions such as this and industries such as those that will determine the

course of this recovery.”

Mark Carney, Governor of Bank of England, 28 August 2013,

Nottingham

D2N2 is at the heart of rebalancing the UK economy, delivering high quality

private sector jobs to implement the Government’s Industrial strategy. We

compete in a global economy – our competitors are in China, North America

and India.

This D2N2 Strategic Economic Plan is distinctive, supporting not only iconic

D2N2 businesses, like Rolls Royce, Alliance Boots, Toyota, Speedo, British

Sugar, Thorntons, Capital One and Bombardier, to compete but also our

small and medium sized business and start-ups to grow faster, access

finance, innovate and export. Through a targeted accelerated development

programme we will provide the economic infrastructure to speed up delivery

of key development and affordable homes for people to live in. By acting

locally we can compete globally.

This Plan is also a call for urgent action.

As the birthplace of industrialisation, D2N2 has a proud heritage and is the

UK heartland for manufacturing, engineering and innovation. Making things

is in our economic DNA but our economy has yet to achieve its full potential.

Our businesses, connectivity, innovation, natural environment, iconic

landscapes, exporting and cutting-edge manufacturing and engineering firms

provide our competitive advantage. Implementing the key priorities of this

plan will accelerate the rebalancing of our economy and the creation of new

private sector jobs, new businesses and homes and share those benefits

across our communities. It will increase productivity and raise living

standards making D2N2 an even better place to live, work and invest.

This plan is strategic - providing sustainable jobs to meet the challenges of

the future; tactical - targeting our distinctiveness through our competitive

advantages and prioritised - identifying clearly the key priorities for 15/16 in

the context of a broad pipeline of activity which will be developed with

Government and communities.

Local areas should be the beneficiaries of local growth with increasing local

control over the public revenues raised from growth. This plan further

develops a framework of local freedoms and flexibilities to encourage action

and incentivise risk and reward.

Finally, this plan brings together the leadership, know-how and drive of the

private sector with the local knowledge and ethos of the public sector, Higher

Education, Further Education and the Voluntary and Community Sector. As

such it is a shared plan of action, with clear priorities, which we are delighted

to commend to government and to the many and diverse of communities of

Derby, Derbyshire, Nottingham and Nottinghamshire.

Page 4: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

4

Peter Richardson,

Chairman D2N2

Professor John Coyne

Vice Chancellor, University of Derby

Dame Asha Kemka

Principal and Chief Executive, Vision West Notts

Chris Marples

Chief Executive, Inspirepac Ltd

Liz Fothergill

Chief Executive, Pennine Healthcare

Trevor Fletcher

Managing Director and Chairman, Hardstaff Group

Richard Horsley

Managing Director, QED Public Relations Ltd

Peter Gadsby

Chairman, Ark Capital Ltd

Robert Crowder

Chief Executive, Rural Community Action Nottinghamshire

Cllr Roger Blaney

Leader, Newark & Sherwood District Council

Cllr John Burrows

Leader, Chesterfield Borough Council

Cllr Paul Bayliss

Leader, Derby City Council

Cllr Anne Western

Leader, Derbyshire County Council

Cllr Jon Collins

Leader, Nottingham City Council

Cllr Alan Rhodes

Leader, Nottinghamshire County Council

Page 5: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

5

Page 6: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

6

Our Vision for Derby, Derbyshire, Nottingham and Nottinghamshire

In D2N2 we…

Innovation is in our DNA…

From being the cradle for the industrial revolution and home to the world’s

first factory, Derby, Derbyshire, Nottingham and Nottinghamshire (D2N2)

remains a dynamic and diverse economy with enduring excellence in cutting-

edge manufacturing and engineering, particularly transport, life sciences and

construction. D2N2 combines the best of vital urban conurbations including

the Core City of Nottingham and the Key City of Derby, with important sub-

regional centres, attractive market towns and productive and diversified rural

economies, within a high quality natural environment which enhances the

quality of life for our residents as well as being a key economic asset. We

have world-class universities and excellent innovative companies large and

small, from Sygnature Discovery in Nottingham to Toyota UK, Alliance

Boots, EoN and Rolls Royce. With developments like ‘BioCity’ and Infinity

Park we can grow the firms of tomorrow. In D2N2, we create, we make and

we connect.

At the very heart of the UK, with excellent and improving transport and digital

connectivity, we have real export strengths and make a significant

contribution to the UK’s export earnings. Building on our skilled workforce,

innovative capacity, high-quality locations and vibrant urban and rural

environment, D2N2 is the competitive location for business investment and

has the potential to increase its rate of economic growth and make a

significant contribution to achieving the Government’s ambitions for creating

a more balanced and sustainable UK economy.

Page 7: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

7

Our businesses say…

“For a growing CleanTech business the area is an ideal base as Nottingham

University is a World authority on carbon fibre and that gives us access to

leading thinkers, highly skilled workers and technology development

opportunities that make this an excellent place for advanced composites

design and manufacture. Direct trains to London and East Midlands Airport

plus the impact of the Web mean that we can reach customers anywhere in

the world with the technology we are developing.”

Lyndon Sanders – Director and General Manager FAR Composites

“The D2N2 region has the largest concentration of Rolls-Royce employees in

the UK and Derby is the HQ location for our Civil Aerospace and Nuclear

businesses along with many other facilities. Innovation is the lifeblood of our

business which together with the skills of our employees is crucial to our

success. The focus of the Local Enterprise Partnership’s strategy on

business-led growth and innovation, infrastructure investment and raising the

standards of local skills aligns with our objectives and is welcomed by Rolls-

Royce.”

CP Smith CBE, Director – Engineering & Technology, Rolls-Royce plc

“The D2N2 public/private sector partnership will play a key role in raising

aspirations in its area, and in bringing together all the ingredients needed for

local businesses and local people to succeed.”

Terry Nash, Managing Director, Gusto Group Ltd

“Derby city and the surrounding region has rich industrial heritage upon

which has been built an exceptionally strong Manufacturing and Engineering

base which gives it great economic strength. Toyota understood these

strengths when it decided to establish its first European car factory here over

20 years ago, one that it has continued to invest in ever since.”

Tony Walker, Managing Director, Toyota UK

“Nottingham has been the home of the Boots brand for over 160 years and

we remain committed to our presence in the region. The central location

works well for our logistics operations supported by the improving travel

infrastructure. Further, access to a highly educated workforce and a thriving

economy makes it the perfect location for any business wishing to locate to a

world-class city.

We have a long history of innovation, particularly in Nottingham and the

area’s current development focus on Life Sciences supports the business in

achieving our vision for the Nottingham Enterprise Zone to be a UK centre of

excellence for health, beauty and wellness, as well as encouraging new

businesses into the Nottingham area.”

Mark Chivers, Enterprise Zone Director, Alliance Boots

Page 8: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

8

Our Strategic Economic Plan

The D2N2 Strategic Economic Plan (SEP) sets out our proposals for raising

growth rates in the D2N2 area, creating increased prosperity and higher

levels of employment. We want to ensure that we harness the potential of all

our businesses and people, and energise and empower our partners, in

order to make the greatest possible contribution to national economic

growth.

The SEP sets out our approach to achieving our ambitious Vision, based on

a thorough understanding of economic opportunities and a clear logic for

intervention where necessary to overcome market failure and tackle barriers

to growth. The SEP includes our proposals for the use of Local Growth

Funds (LGF), but its coverage goes far beyond LGF to bring together the

plans of all local partners and stakeholders to support growth in the D2N2

area.

The role of the Strategic Economic Plan

Local

Growth Fund

Enterprise

Zone

Reciepts

Regional

Growth

Fund

Growing

Places Fund

European

Structural

Investment

Funds

Derby Economic Strategy 2011-

2016,

(overseen by Derby Renaissance

Board)

Nottingham Economic Growth

Plan,(overseen by Nottingham Economic

Growth Board)

Nottinghamshire Growth Plan,(overseen by Nottinghamshire

Business Engagement Group)

Derbyshire Economic Strategy

Statement,

(overseen by Derbyshire Economic

Partnership)

Directs use of funding

D2N2 Strategic Economic Plan

- the overarching strategic framework

Inspires and

builds on local

growth

strategies

The Strategic Economic Plan takes forward the plans set out in our Strategy

for Growth 2013-2023. Since this was published in July 2013 we have:

Developed programmes of activity under each of our strategic themes

Identified the freedoms and flexibilities we wish to request from

Government in order to accelerate growth in the D2N2 area

Increased the accountability and inclusivity of the LEP’s decision

making through strengthened governance, including agreement to

establish Economic Prosperity Committees (‘Joint Committees’ for D2

and N2.

Our Vision for Growth

Our vision and ambition is built on our knowledge of the D2N2 economy,

recognition of the challenges and opportunities of the 21st century global

economy and our understanding that economic growth is not an end in itself.

Economic growth enables individuals to access the opportunities to lead

productive and rewarding lives, our society and culture to flourish and allows

us to protect and enhance our environment, creating a sustainable, low

carbon future for the D2N2 area.

Our Vision is that D2N2 will become a more prosperous, better

connected, and increasingly competitive and resilient economy, at the

heart of the UK economy, making a leading contribution to the UK’s

advanced manufacturing and life sciences sectors and generating significant

export earnings for UK plc. We will create a D2N2 which provides a great

place to live, work and invest.

Page 9: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

9

A more prosperous, better connected, increasingly resilient

and competitive economyOur Vision:

We will

invest in five

strategic

priorities:

By 2023,

we will have

created:55,000 additional private sector employee jobs

Business

Support and

Access to

Finance

Employment

and Skills

Infrastructure

for Economic

growth

Innovation

Our priority

sectors are:

Housing and

Regeneration

Transport

Equipment

Manufactu

ring

Life

Sciences

Cons-

truction

Food and

Drink

Manufact

uring

Visitor

Economy

Low Carbon

Goods and

Services

Creative

Industries

Transport

and

Logistics

Our Targets

Our Growth Strategy set out one single target – to support the creation of

an additional 55,000 private sector employee jobs in D2N2 by 2023,

shifting the balance to more private sector jobs1. Every action proposed in

this Strategic Economic Plan will help us to move towards this target, by

inspiring economic growth and supporting firms to innovate, invest, export,

grow and create sustainable jobs.

By 2023, this will mean that D2N2 is recognised as a place which:

Inspires and supports people to achieve their potential

Has an economy that provides opportunities for our young people to live,

work and prosper

Builds on our strengths to create well paid and rewarding jobs for local people

in our key growth sectors

Has developed the innovation ecosystem to accelerate economic growth

Exploits opportunities in the fastest growing markets across the globe

Is the best connected place in the country, at the heart of the national

economy, with all communities able to contribute to growth and prosperity

regardless of location

Is home to Nottingham, one of England’s eight ‘Core Cities’ and the leading

city in the UK for life sciences

Is home to Derby, one of England’s ‘Key Cities’ and the leading city in the UK

for transport manufacturing and engineering, having celebrated 175 years of

rail manufacturing in 2014

Presents a world-class destination of choice for visitors and investors alike

Has a high quality natural environment that is recognised as an economic

asset

Ensures the benefits of growth are shared by all.

1 See The State of the D2N2 Economy 2013 report for an explanation of the sectors

in which these jobs are expected to be created, p40, http://www.d2n2lep.org/write/Audio/State_of_D2N2_Economy_Report.doc

Page 10: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

10

To achieve these ambitions, we need to put in place the infrastructure and

conditions that will support business and employment growth, including:

A business support system that responds to the specific needs of

businesses in the D2N2 area and promotes business start-up and

growth;

A range of tools to ensure that businesses can access the financial

support they need;

An innovation ecosystem that commercialises cutting edge R&D and

supports product and process innovation within businesses,

including developing the skills needed to develop more innovative

businesses and driving innovation through supply chains;

A skills and training system which ensures our young people are

properly prepared for work, enables employers to access the skilled

workers they need and supports people, including our most

disadvantaged individuals, to develop their skills and employability to

gain, retain and enhance employment and earnings;

Economic infrastructure that meets the needs of the 21st century

economy, including a world-class transport system, building on

existing excellence, that allows us to capitalise on our position at the

heart of the UK’s road and rail network, with links to international

markets via East Midlands Airport, other airports including

Manchester, Robin Hood and Birmingham and, in future, HS2,

alongside excellent local connectivity, a range of employment

locations to suit our diverse business base, digital infrastructure that

reaches all parts of our geography, and a housing offer that

reinforces the vibrancy of our cities, towns and villages and attracts

and retains the high quality workforce that our businesses need.

Key Economic Assets and Opportunities

The key economic assets and opportunities that will help us to achieve this

ambition are shown in the map overleaf:

Page 11: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

11

Page 12: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

12

A Track Record of Delivery

Since its formation in 2010, D2N2 LEP has established a strong track record

of inspiring, facilitating and delivering economic growth.

We have already established:

A detailed and independent evidence base – ‘the State of the Economy’ reviewed annually and supported by a balanced scorecard performance management framework

A six year project pipeline of key infrastructure packages including broadband and transport from which we have drawn our headline asks

An innovation programme bringing together key employers with our three universities

A Skills Plan, endorsed by the Secretary of State to achieve employer-led skills delivery

A growth hub providing a single front door for business – www.businessadvicewebsite.com in partnership with the Chamber of Commerce, CI, IOD, FSB and local business support organisations

Sector development plans including the publication of our Low Carbon Action Plan

Localism in action

o Establishment of local government joint committees to drive and join-up economic growth across D2 and N2 respectively and commitment to review the opportunities for embedding further governance frameworks

o Developing a growth plan for the Peak District with Business Peak District and Peak District National Park

o a social inclusion framework in partnership with our VCS.

o Scoping with local MP an outer estates programme in North Nottingham

o A partnership with Toyota to help deliver the Local Nature Partnership

o A draft Growth Deal identifying key freedoms and flexibilities

The Nottingham Enterprise Zone, Growing Places Fund programme and Unlocking Investment for Growth RGF programme

An ESIF programme to provide further fuel to deliver the Strategic Economic

Plan and directly complement the Local Growth Fund

A communications plan in partnership with local media and other key agencies to highlight LEP transparency and accountability

An implementation plan that will bring together the ‘single pot’ of EU,

national and local funding together with our key freedoms and flexibilities

into a clear and manageable delivery plan with business cases for our

headline projects

Our Approach

D2N2 is a lean, business led partnership focussing on inspiring economic

growth and job creation. Our approach to our SEP and our use of LGF is

based on the following key principles:

Adding value through strategic prioritisation of transformational investments in the

area of manufacturing, innovation and connectivity

Inspiring others to deliver our shared priorities whilst focussing on strategy and

performance management

Acting together: harnessing the power of partnership across the local authorities and

pooling resources to achieve increased impact across the D2N2 geography

Shaping national programmes to meet local needs, building on what works and

taking the best of our partners’ programmes a scaling them to benefit the whole area.

Our Offer to Government

The proposals set out in our Strategic Economic Plan will enable the D2N2

partners to support significantly increased economic growth, contributing to a

number of the Government’s key priorities:

We will contribute to re-balancing the UK economy as foreseen in

the 2011 Plan for Growth, by increasing the number of private

sector jobs and strengthening our key sectors through flagship

interventions including the development of our Enterprise Zones and

Page 13: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

13

other strategic sites, establishment of an HS2 Skills Academy, a

major Innovation Programme drawing on research with businesses

in our priority sectors, and the establishment of the Growth Hub to

support business growth across D2N2.

We will prioritise sectors, in line with the Government’s Industrial

Strategy. Our focus will be on sectors in which we have exceptional

strengths – including transport equipment manufacturing, life

sciences and low carbon goods and services - where we have

greatest potential to increase employment, exports and GVA.

Our low carbon goods and services sector and low carbon action

plan provide D2N2 with a competitive advantage from which all

businesses can benefit, and will support the ambition of the Strategy

for Sustainable Growth for a sustainable, greener economy.

We will support the City Deal, agreed between Nottingham and

central Government in 2012 and its enhancement through our

Growth Deal to extend its benefits across the area.

Our offer to Government is that in the period to 2023, we will deliver:

55,000 additional private sector employee jobs in the D2N2 area

A step change in skills levels amongst our workforce and young

people

A significant increase in our business base

The 77,000 additional homes we will need to accommodate our

growing population2.

Leverage of funding through our City Deal, EU Structural and

Investment Funds and private sector investment.

2 CLG Housing Projections, NB projection period is 2011-2021

Our Ambition on Jobs

The programmes and investments identified in this Strategic Economic Plan

will contribute to the creation of 55,000 additional private sector employee

jobs in the D2N2 area between 2013 and 2023. As shown in the chart

opposite, this requires a step change in jobs growth as the D2N2 economy

emerges from recession.

Our aim is not only to grow our economy but to re-balance it. During the

1998-2008 growth period, just over 30,000 jobs were created in D2N2.

However, the number of private sector jobs actually fell by some 2,2003.

Between 2013 and 2023 we want to ensure that the vast majority of

employment growth in D2N2 (nearly 93%) results from a thriving and

growing private sector business base, rather than being dependent on public

sector expenditure4. The scale of this challenge is shown opposite:

3 Public sector jobs are assumed to be those in the public administration and defence

sector, plus the majority of those in the health and education sectors. Private sector

jobs are the remainder. 4 We recognise that our growing population will result in some growth in public sector

employment (in sectors such as education and health).

Page 14: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

14

740,000

760,000

780,000

800,000

820,000

840,000

860,000

880,000

900,000

920,000

940,0001

99

8

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

D2N2 Growth Plan - Step Change Required by the D2N2 Economy

D2N2 Employees D2N2 Projected Employees

Source: ABI & BRES (note f igures for 2008-2011 indicative only due to data limitations)

Growth Period Recession and Recovery Future Growth

-10,000 0 10,000 20,000 30,000 40,000 50,000 60,000

2013-2023

1998-2008

Our ambition for D2N2: Re-balance the economy by creating 55,000 private sector employee jobs

Change in private sector employment Increase in public sector employment

Source: 1998-2008 data: ABI, 2013-2023: D2N2 target

To achieve our ambition we need to invest in programmes which will support

a step change in private sector job creation in D2N2, including:

the provision of a range of business support services, available to all

our businesses, that respond to businesses needs and encourage

business growth;

providing access to the finance that businesses need to grow;

a programme of innovation investment that supports our companies

to develop new products and processes and gives them the skills to

invest in innovation;

ensuring our workforce and young people have the skills businesses

need to grow and prosper in the 21st century economy;

creating the sites and premises that will allow our indigenous

businesses to grow as well as attracting inward investors from

across the world;

Page 15: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

15

ensuring our transport and broadband infrastructure enable growth

rather than constraining it; and

ensuring we have the appropriate mix of housing for economic

growth.

This will allow us to significantly increase the rate at which private sector

jobs are created, which will be vital if we are to achieve our target of creating

55,000 additional private sector employee jobs.

640000

660000

680000

700000

720000

740000

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

Step Change in Private Sector Employment Required in the D2N2 Economy

Private sector employees*

Trend line

Increase in private sector employees to meet D2N2 target

Growth Period Recession and Recovery

Future Growth

Private sector employees source: ABI, BRES*affected by data discontinuity 2008

Our Ambition on Housing

Providing the housing that our economy needs to achieve its growth

potential is a crucial component of our overall strategy. Our ambition is to

accelerate the delivery of 77,000 new homes needed to support growth in

D2N2, helping to make it an attractive and aspirational place to live and

work. We will work within the strategic framework provided by the local

authorities’ Local Development Framework housing policies and allocations,

accelerating development where possible and helping our partners to

overcome the barriers and constraints which may delay development of key

schemes.

860,000

880,000

900,000

920,000

940,000

960,000

980,000

1,000,000

1,020,000

Dw

ellin

gs

D2N2 Housing Stock - past trends and projections

Housing stock Housing stock projections - current plans

Housing stock projections - with LEP support

Page 16: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

16

Priority Actions

With partners, D2N2 will pursue a range of interventions and key actions to

support sustainable growth and recovery and to achieve our headline

ambition of 55,000 additional private sector employee jobs by 2023. Our

Board has agreed that our actions should be structured within four key

themes. The priority actions within each of these themes are shown in the

tables below:

Innovation-Led Growth Leveraging our key OEMs and

their Supply Chains

Headline Local Growth Fund asks for 2015/16 include

Creative Quarter

As the flagship Nottingham City Deal project, the Creative Quarter supports

D2N2’s priority sectors of creative industries and life sciences. This programme

involves the expansion of Biocity, the provision of workspace to expand premises

for new business, together with the refurbishment and upgrading of vacant

properties. In conjunction with removing barriers to developing the Island Site

these initiatives will create a dynamic environment where new and existing

innovative business will prosper. The Creative Quarter is already starting to

flourish as a creative industries cluster, this will enable it to realise its full potential.

Outputs: 7103 Jobs 3350 dwellings

Nottingham Enterprise Zone

D2N2’s priority project, supported by central government, the development of the

four sites within the Enterprise Zone is vital to support technology-intensive

companies that will define D2N2’s international reputation. This programme will

help open up access to the sites for employment and housing use, including

improved pedestrian routes, upgraded canal bridge, cycle links, cycling facilities,

bus and green infrastructure.

Outputs: 6871 Jobs 365 dwellings

Infinity Park

Infinity Park Derby will exemplify Derby’s future thinking and global influence within

the advanced engineering sectors, including the automotive, rail and aerospace

industries and their supply chain. This priority project delivers flood alleviation,

highway access and other infrastructure works to accelerate delivery and open up

Phase 2 of the Innovation Hub to provide world class innovation employment

space, ICT, business and technology support.

Outputs: 2750 jobs

D2N2 Business Growth Fund

The Business Growth Fund will build on the success of existing RGF-funded

activity in D2N2 which is due to conclude shortly, using proven mechanisms to

ensure successful investments and excellent value for money. The Business

Growth Fund will be a flexible fund, linked to the Growth Hub, that will offer

incentives to support SMEs and inward investors, particularly in our priority sectors,

to make capital investments to accelerate growth, create sustainable employment

and enable innovation to enhance competitiveness. We will also sustain visitor

economy marketing campaigns linked to our identified key attractor assets to

promote increased visitor spend and employment growth within the visitor

economy.

Outputs: 400 Jobs

Our priority actions include:

Developing a D2N2 Growth Hub by July 2014 – with physical presence in

Page 17: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

17

Nottingham to provide businesses with the support they need to start-up,

grow and take advantage of enhanced digital connectivity

A portfolio of access to finance solutions, ensuring our businesses can

access the financial support they need to grow

Support for key Growth Sectors through investment in infrastructure,

technology and sector Growth Hubs, set out in our sector development

plans and funded through a range of sources, including our Business

Growth Fund

Support for companies within growth sectors to grow and innovate

A network of advanced innovation and incubation facilities: - A

University Enterprise Zone; Innovation Centre at Infinity Park, and

new development at BioCity and MediCity

Innovation and growth programmes, including networks and access

to finance, building on successful schemes like Growth 100, Next

Business Generation, Derby Enterprise Growth Fund and the

Creative Quarter in Nottingham, and helping to support research and

development

Supporting skills for innovation including the Institute of Sustainable

Engineering, rail training centre and getting graduates into existing

businesses and starting their own enterprises

Support for international trade and investment links through our delivery

partners

Accelerating Commercial and Residential Development

Headline Local Growth Fund asks for 2015/16 include

The delivery of place-based packages comprising projects to deliver modal shift to

create headroom for growth, targeted pinch point schemes on the road network,

multi-modal corridor improvements, new access infrastructure and other targeted

infrastructure measures to unlock our key sites including:

Broadmarsh and Southern Gateway

Reinvigorating the southern entrance to the City Centre of Nottingham, this

programme ensures the Southern Gateway including Broadmarsh will be

transformed through transport and public realm infrastructure investment linked to

the £150m investment (Intu and City Council) in the Broadmarsh centre, £40m new

Station Hub, a new integrated college site and Nottingham Castle redevelopment.

This will support comprehensive development, the growth of the D2N2 priority

sector of the visitor economy and greatly expand Nottingham’s retail offer.

Outputs: 9900 Jobs 900 dwellings

Our City Our River, Derby

A comprehensive programme of capital infrastructure interventions, designed to

unlock substantial economic regeneration of brownfield opportunity sites;

incorporating innovative flood resilience, alleviation, and defence measures

Outputs: 6000 Jobs 600 dwellings

Chesterfield town centre and A61 Growth Corridor

Development of Chesterfield Waterside and commercial development around the

canal basin. Includes A61 Whittington Moor Roundabout. Major junction

improvement and committed Local Transport Board Majors priority scheme.

Outputs: 3700 Jobs 1990 dwellings

Derby A52 Pride Park

Major junction improvement and committed Local Transport Board Transport

Majors priority scheme. Will support 3200 new jobs on Pride Park and the Derwent

Triangle.

Outputs: 3200 Jobs

Rolls Royce site, Hucknall

Access and infrastructure works to facilitate 27.1ha business park and residential

development

Outputs: 2200 Jobs 900 dwellings

Woodville/Swadlincote Regeneration Route & Drakelow Park

Page 18: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

18

Unlocking up to 35 hectares of land for redevelopment

Outputs: 2160 Jobs 2539 dwellings

Markham Vale Enterprise Zone

Seymour Link Road. Regeneration Route and committed Local Transport Board

Transport Majors priority scheme.

Outputs: 2114 Jobs

A46 corridor projects, Rushcliffe

Facilitating 3 urban extensions on the edge of Nottingham

Outputs: 2000 Jobs 3500 dwellings

A57 / A60 Junction, Worksop

Major junction improvement and committed Local Transport Board Transport

Majors priority scheme. The scheme will contribute towards enabling 1,805 new

jobs and 1,175 new homes.

Outputs: 1805 Jobs 1175 dwellings

Key Mixed Use sites in the Peak

New access routes to facilitate development at Ashbourne, Bakewell Riverside,

Fairfield Link, Buxton

Outputs: 1450 Jobs 810 dwellings

Sherwood Growth Corridor

Providing highway improvements to bring forward 5.8Ha of employment land and

the Mansfield urban extension

Outputs: 1000 Jobs 1700 dwellings

Newark Southern Link Road

Unlocking a major strategic mixed use site to the south of Newark to facilitate an

urban extension

Outputs: 800 Jobs 4050 dwellings

Our priority actions include:

A programme of strategic economic infrastructure investment packages to

accelerate the delivery of jobs and homes

A Large Sites programme in partnership with HCA

Superfast broadband connectivity across D2N2

Work with partners to fully capture the benefits of HS2 (see HS2 and East

Midlands Connectivity)

A D2N2 Skills Deal

Headline Local Growth Fund asks for 2015/16 include;

A Single Further Education Hub for Nottingham

The Nottingham Skills and Employment programme will involve integrating FE

provision and employment opportunities across the city that will meet the demands

of business. It will provide a new physical College hub in the heart of Nottingham’s

Creative Quarter, with employment spokes in our communities, which will

complement existing Work Programme, Youth Contract, Employer and

Apprenticeship Hubs. The Nottingham Skills Hub will respond directly to the needs

of local employers; supplying the skills required for Nottingham’s key employment

and growth sectors. It will promote and develop entrepreneurial behaviours, career

aspiration and transparent progression pathways into employment, within fit-for-

purpose, industry-standard facilities.

Outputs: 490 Jobs

New integrated FE and Skills provision delivered via close collaboration and

serving Nottingham its sub-region and 1,200 additional learners per year within 3

years

Chesterfield Centre for Higher Level Skills l

Page 19: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

19

The new Centre for Higher Level skills will deliver a step change in higher level

skills opportunities and support the economic growth and resilience of businesses

and the workforce in Chesterfield and North East Derbyshire. A clearly visible

progression pathway from Apprenticeship to Higher Apprenticeship will encourage

and provide a greater opportunity to young people with more choices post-16. The

University Centre will provide innovation support to stimulate business

collaboration and by providing eight business incubation units a programme of

enterprise and entrepreneurship support.

Outputs: 1483 new students over 5 years who would have access to higher and

vocational pathways

Hudson Building, Derby

Derby College will be able to offer more opportunities in construction for young

people across all age ranges as well as offering more flexibility. The College will

expand its apprenticeship provision across all levels as well as offering a broader

range of apprenticeships and programmes such as qualifications in ground-

working, low carbon construction techniques, retro fit and environmental

construction and roofing.

Outputs: 2000 new students over 3 years, 96 new apprenticeship opportunities

within the first year.

Vision University Centre, Mansfield

The Vision University Centre will create a new teaching and learning space with

state of the art facilities to support local people gain higher level vocational skills.

The new University Centre will build on the success of the local HE provision

offered by West Nottingham College in partnership with local universities. Creating

more opportunities to access higher level skills locally will support increased

progression to HE among young people and ensure local employers can access

the higher level skills they need to support the growth of their businesses.

Outputs: The new University Centre will support in excess of 600 new HE learners

over 3 years, including an additional 100 Higher Apprenticeships

Broomfield Hall, Derbyshire (redevelopment)

The fit-for-purpose land-based skills campus and sports analysis centre will

prepare over 500 learners with new emerging careers. Broomfield Hall delivery will

be based around vocational and apprenticeship provision.

Outputs: 176 new apprenticeship opportunities within the first year.

Our priority actions include:

Transformation of facilities for HE/FE including:

A new campus at Basford Hall, Nottingham will be a regional hub for

training in construction, science, technology and sustainable technologies.

The campus will be a true 'community college' which reflects the hopes

and aspirations of those living nearby.

An integrated Nottingham Skills Hub providing a new physical integrated

college serving Nottingham and Nottinghamshire in the heart of

Nottingham’s Creative Quarter.

A University for Mansfield and Chesterfield will deliver a step change in

higher level skills opportunities and support the economic growth and

resilience of businesses and the workforce in Mansfield, Chesterfield and

North East Derbyshire.

The HS2 College is a significant opportunity to build on the specialist

facilities and extensive relationships with employers that already exist,

and all stakeholders are committed to working collaboratively to provide a

centralised locality.

UTCs for Derby and Nottingham will provide specialist education and

work-related opportunities for local students. The Derby Manufacturing

University College will specialise in engineering and technology skills and

Page 20: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

20

the Nottingham University Academy will specialise in science, technology,

engineering and maths.

The Vision Studio School at Mansfield will provide an exciting, vibrant and

dynamic learning experience for young people aged 14-18 and will

specialise in Engineering, Transportation and Health and Care

occupations.

Meeting the Needs of Key Sectors:

Sector Consultative Task Groups and action plans are being formulated to

inform workforce growth, development and on-going consultation.

A holistic employer and sector-led engagement strategy.

Increase Employability and Enterprise Skills:

A D2N2 Employability Framework to help young people to be more job

ready, support school IAG, skills competitions, events, pathways,

enterprise and a D2N2 Skills Show.

A D2N2 pathway for traineeships and higher level career pathways

developed as a tool-kit for students, schools, careers advisers, providers

and employers.

Reducing Unemployment:

Support for local programmes to help people into work with activities to

engage the disengaged, promote destination and outcome based

programmes and provide local and responsive support and funding in line

with emerging community needs. Provide specialist support, engagement

and incentives.

Reducing NEETs and youth unemployment through increased success for

IAG.

Increasing Employer Uptake:

Provide demand-led training informed by employers.

Develop activities to support the roll-out of a sustainable Apprenticeship

Hub model across D2N2 providing employer incentives to encourage a

20% increase in apprenticeships.

Provide opportunities to create traineeship destinations through

engagement incentives to support providers and employers.

Higher Level Skills Development:

Access to a highly skilled workforce critical to its future growth, capacity

for innovation and economic resilience.

Support graduate placements and internship projects

HS2 and East Midlands Connectivity

Headline Local Growth Fund asks for 2015/16 include

Collaborating to fully realise the huge economic potential of HS2 and to build the

competitive advantage provided by our connectivity through the East Midlands and

beyond is a priority for D2N2 in 2015/16.

HS2: Detailed Connectivity and Master Planning

We will work with partners, including HS2 Ltd, East Midlands Airport, transport

Page 21: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

21

authorities, LLEP and business to masterplan the proposed HS2 Station, develop

an integrated East Midlands connectivity package, exploit the full benefits of the

proposed rail freight hubs and study solutions for orbital movements to the east

side of Nottingham. This will require revenue support from the Local Growth Fund

to unlock the economic potential of the station site and ensure that wider region

maximises the benefits from HS2 and strategic connectivity enhancements.

Midland Main Line Speed Improvements for Market Harborough

Working collaboratively with Network Rail, LLEP and Sheffield City Region LEP we

will use Local Growth Funding to deliver line speed improvements to the Midland

Mainline at Market Harborough to enhance journey times, particularly to London

from the East Midlands and South Yorkshire. It is a time critical investment that

needs to happen in advance of electrification.

Nottingham – Lincoln Castle Line

The speed and frequency of rail services between the Core City of Nottingham and

Newark, a key focus of future growth, and then to Lincoln are an impediment to

growth in this key corridor with the fastest current journey time slower than the

service 100 years ago. D2N2 will work with East Midlands Trains and Greater

Lincolnshire LEP to secure Local Growth Funding to increase train frequencies and

improve journey times on this corridor.

Superfast Broadband

We will build on current investments through BDUK and other routes through

investments leveraged by the Local Growth Fund to spread connectivity,

particularly in rural areas, beyond the current 95% of premises coverage target and

to address insufficient speed in key urban areas. This will minimise digital

exclusion and together with support for exploiting enhanced digital connectivity,

support business investment and growth.

HS2 College in Derby

Locating the HS2 College at Derby will not require support from the Local Growth

Fund. It is readily deliverable in 2015/16 and will provide world class skills for the

development and operation of HS2, building on the existing facilities, capacity and

established rail industry relationships of our 11 colleges working in partnership.

Our priority actions include:

We will lead a taskforce to develop a strategy to fully capture the benefits

of HS2, bringing together HS2 Limited, LLEP and local transport

authorities. This will include the development of a Masterplan for the

proposed HS2 station, to support the delivery of the proposed

Maintenance Deport at Staveley and to enable early work on

infrastructure, and a regional connectivity package to deliver improved

connectivity across the D2N2 area, and fully capture the benefits of HS2

for the East Midlands economy

We will work with East Midlands Airport, LLEP, Highways Agency, rail

stakeholders and private sector partners to maximise the benefits of the

development of air services and emerging proposals for Strategic Rail

Freight Interchanges near A50/M1 J23a/24, which will deliver large-

scale economic benefits across the wider East Midlands.

We will work with Network Rail, Sheffield City Region and LLEP to ensure

immediate action to secure improvements to line speeds at Market

Harborough, prior to electrification of Midland Main Line, and with GLLEP

to secure improvements to the Nottingham Lincoln Castle line.

Accelerated business cases for key economic infrastructure and

connectivity investments, including wider rail connectivity, the Fourth

Trent Crossing and orbital movements around the east side of Greater

Nottingham.

Page 22: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

22

Understanding the D2N2 Economy

Introduction to the D2N2 Economy

The D2N2 Local Enterprise Partnership area covers Derby, Derbyshire,

Nottingham and Nottinghamshire. It is one of the largest LEP areas within

England, with a population of more than 2m people and an economic output

of nearly £40bn. The economy comprises a mixture of rural and urban areas

across 19 local authority areas. Employment is distributed across D2N2 but

there is a concentration of employment in and around the area’s two largest

centres – the Core City of Nottingham and the key city of Derby – with the

two cities combined accounting for 36% of total employment compared to

26% of total population5. Alongside the two cities there is also a distinct

urban conurbation in Ashfield / Mansfield. There are also a number of

smaller centres that serve rural hinterlands across the D2N2 area.

5 Workers also commute to employment in the major conurbations surrounding

D2N2, including Sheffield and Manchester.

D2N2 Population, 2012

Economic Geography

D2N2 has a central location in England, well served by key north-south

transport links such as the M1, A1, Midland Main Line and East Coast Main

Line with a comparatively competitive and abundant supply of sites to

promote investment. Parts of the D2N2 area have close economic linkages

with major conurbations outside the D2N2 boundary, including Sheffield to

the north, Manchester to the north west, Stoke to the west and Birmingham

and the West Midlands conurbation to the south west.

There are broadly four distinct economic areas within the D2N2 boundary:

Nottingham City and the surrounding areas of south and east

Nottinghamshire and east Derbyshire – the Core City of

Nottingham is an employment destination for commuters and a

Page 23: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

23

centre of business activity and services. Approximately one-third of

the D2N2 population lives within the conurbation and the city

provides both highly skilled and well-paid employment (often taken

up by residents commuting in from surrounding areas) as well as a

large number of relatively low paid jobs, and has relatively high rates

of unemployment. Parts of Rushcliffe and Newark and Sherwood

Districts could be considered part of the London commuter belt, with

Newark less than 70 minutes from London by train;

Derby City, South Derbyshire and the M1 corridor – a cluster of

highly competitive advanced manufacturing firms means wages are

high and there are opportunities for highly skilled workers. Whilst

the key city of Derby and the surrounding urban area account for a

high proportion of employment, South Derbyshire and Amber Valley

have significant employment and business bases, and a number of

major opportunities. There is also evidence of significant out-

commuting by professional and managerial workers to areas

including Nottingham and the West Midlands;

North Nottinghamshire and north east Derbyshire are areas with

industrial legacies which offer opportunities linked to brownfield land,

lower wage rates and excellent transport connections. There is a

flourishing manufacturing sector in these areas, attracted in part by

the availability of land for development and excellent workforce

training provision through colleges such as Vision West Notts

College and Chesterfield College. The area is also part of the

Sheffield City Region, with Bolsover experiencing strong

employment growth, and Chesterfield attracting an in-flow of

commuters. There are also strong links to Mansfield and Ashfield;

The wider Peak District area is predominantly rural with a number

of important market towns acting as employment and service centres

in their own right. The resident population is highly qualified but

many commute to professional jobs in the surrounding cities of

Sheffield and Manchester (as well as Derby and Nottingham) and

despite the presence of some high value SMEs, workplace wages in

the area are low. There are significant levels of employment in the

public sector, manufacturing and sectors associated with tourism,

and Derbyshire is the most important mineral-producing area in the

UK, with this high-value activity concentrated in the wider Peak

District.

Page 24: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

24

Economic Overview and Performance

Analysis of the D2N2 economy has highlighted its distinctive characteristics,

many of which relate to its innovation, manufacturing and exporting strengths

and strategic location within UK and international transport routes.

The D2N2 Economy – Distinct Characteristics

Sectoral Strengths

The transport equipment manufacturing sector, given the presence of global

companies and a large local supply chain, is 40% more productive in the D2N2

area than elsewhere in the UK.

Nottingham is designated as one of the UK’s six Science Cities, with the

QMC/Nottingham University Hospital one of the largest teaching hospitals in the

country.

D2N2’s life sciences sector has outperformed the national sector over the past four

years. There was particular growth in the manufacture of basic pharmaceutical

products and medical and dental instruments.

Despite the overall manufacturing sector experiencing decline over the past

decade, as with elsewhere in the UK, the advanced manufacturing sector

experienced growth of 4.3% in the period 2008-10 with the creation of over 2,300

jobs.

The D2N2 growth sectors employ over 150,000 people, accounting for nearly 20%

of the area’s workforce.

International trade and Investment

In 2011/12, nearly 2,300 jobs were created by Foreign Direct Investment into the

D2N2 area, the fifth largest of all the LEP areas.

The D2N2 economy has strengths in exporting, with almost 20% of employment in

export intensive industries, placing it within the top quarter of LEPs in terms of

exports.

Employment

The D2N2 economy employs almost 900,000 people, with a GVA of nearly £40

billion, making it the third largest LEP economy outside the South-East.

Large firms in the D2N2 area employ nearly 250,000 people, with major

multinationals such as Toyota, Rolls-Royce, Bombardier, Alliance Boots, Siemens

and Experian located here, served by a prominent local SME supply chain.

As a consequence of high skilled job opportunities, Derby has the highest

workplace based earnings of any area outside the South-East.

Despite these strengths, overall the D2N2 economy underperforms against

the national average. We have identified the following set of economic

measures against which we will monitor our performance:

Performance on D2N2 Key Economic Measures

GVA per FTE, £ 51,210 Gap with England -7,000

Employment rate, % 70.4% Gap with England -0.5%

Private sector job creation 76.6% Gap with England -2.8%

Unemployment rate 9% Gap with England -1%

Business start up rate 10% Gap with England -1%

Business 3 year survival rate 60% Gap with England +2.1%

Business 5 year survival rate 44% Gap with England -0.8%

% of working age pop. L4+ 29% Gap with England -4%

% of working age pop. L3+ 50% Gap with England -2%

% of working age pop. with no

qualifications 11% Gap with England +0.6%

No. of apprenticeship starts 23,330

Sources: Annual Population Survey, Business Register and Employment Survey,

Business Demography, Regional Accounts, Annual Business Inquiry, Census, The

Data Service.

The data confirms the relevance of D2N2 LEP’s ambitions of:

Increasing employment and the number of private sector jobs by

stimulating indigenous business growth, encouraging higher rates of

enterprise and attracting inward investment

Raising levels of productivity, and

Improving skills levels within the workforce.

Page 25: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

25

Productivity and Earnings

The D2N2 economy generates over £37 billion of Gross Value Added (GVA)

per year. This equates to GVA per full-time equivalent employee (GVA per

FTE) of £51,210, in the mid-range of all the LEP areas.

£0 £10,000 £20,000 £30,000 £40,000 £50,000 £60,000

D2N2

East Midlands

England

GVA per FTE, 2012

D2N2 East Midlands England

Source:Regional Accounts, BRES

GVA per FTE rose by 50% during the last growth period, increasing year on

year for ten years. However, it is only 85% of the England average, and the

gap with England has fluctuated around this level in recent years.

Earnings vary considerably across the D2N2 area, reflecting the differences

in the sectoral structure of the economy. Very high average workplace

earnings in Derby are a result of the highly productive Transport Equipment

Manufacturing sector (and other elements of advanced manufacturing),

whilst other parts of D2N2 have earnings below the national average.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Ave

rage

An

nu

al p

ay (

£)

Average (median) workplace wages in 2012

Source: Annual Survey of Hours and Earnings 2012

30,000

40,000

50,000

60,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

GV

A p

er

FT

E (

£)

GVA per FTE 1998 - 2008Source: Regional Accounts; ABI

D2N2

East Midlands

England

Page 26: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

26

Business Density and Enterprise

Whilst D2N2 has over 66,000 businesses, including over 50,000 micro-

enterprises, the overall business base is low given the size of the population.

In 2012, there were just 314 businesses per 10,000 working age population,

compared with 399 nationally, a gap of some 11,500 businesses.

418 399 384342 342 325 324 314

249

0

50

100

150

200

250

300

350

400

450

Business Density per 10,000 PopulationSource: Business Demography, 2012; Census Population Estimates

The number of active businesses reached a peak of 68,500 in D2N2 in 2008,

and has declined by some 3% since then (a fall of over 2,000 businesses).

This mirrors the trend at regional level but is in contrast to the national

position, with the total number of businesses in England increasing by 2%

over the same period.

68,500

64,000

65,000

66,000

67,000

68,000

69,000

70,000

71,000

2008 2009 2010 2011 2012

Nu

mb

er o

f A

cti

ve

B

usin

esse

s

Active Businesses 2008 - 2012Source: Business Demography

D2N2 East Midlands trend line England trend line

Business survival rates in D2N2 are relatively good, with both the one year

and three year survival rates for new businesses above the England average

in recent years. However, the business birth rate (the number of new

businesses as a percentage of the existing business base), has consistently

been lower in D2N2 than in England as a whole. Increasing the number of

businesses and generating higher level of entrepreneurialism within the

economy is a key priority for D2N2.

Page 27: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

27

International Trade and Foreign Direct Investment

Business growth in D2N2 will come from a number of sources, of which

international trade and foreign direct investment are two of the most

important. Increasing the level of exports are continuing to attract high levels

of FDI are national government priorities, and align with our growth

ambitions.

The D2N2 economy has a long history of exporting high quality

manufactured goods around the world and makes a significant contribution

to the UK’s export earnings. Although limited trade information is available

at LEP level, regional figures show that the balance of trade in the East

Midlands is only slightly negative, in contrast to most other regions of

England.

Imports and Exports: Balance of Trade by Region, 2012

-50

-40

-30

-20

-10

0

10

£b

Source: HMRC

Across East Midlands, there were almost 5,600 companies involved in

exporting goods overseas in 2012, representing 9% of the national figure.

The average value of exports per exporter in the East Midlands was £3.3m.

This fell just short of the national average of £3.4m, and was also lower than

most other regions, indicating that exports from the region are not wholly

dependent on the large OEMs.

However, the importance of the transport manufacturing sector is clear from

an analysis of goods exports by type. The majority of the value of East

Midlands’ exported goods (65%) came from machinery and transport goods,

significantly higher than the same proportion nationally (39%). Other

manufacturing also made a significant contribution to exports.

Value of East Midlands Goods Exports by SITC Section, 2012

65%

12%

9%

7%4%

3%Machinery and Transport

Miscellaneous Manufactures

Manufactured Goods

Chemicals

Food and Live Animals

Crude Materials

Beverages and Tobacco

Other commodities nes

Mineral Fuels

Animal and Vegetable Oils

Source: HMRC

The export markets being served by companies in the East Midlands also differ

from the national picture. The EU accounts for 44% of goods exports by value,

Page 28: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

28

in contrast to 50% nationally. Asia and Oceania account for nearly one-quarter

of exports from the East Midlands, compared to just 15% nationally.

Data from Derbyshire and Nottinghamshire Chamber of Commerce indicates that

the largest non-EU export markets served by businesses using the Chamber’s

export documentation service include Saudi Arabia, Turkey and the United Arab

Emirates, with Russia, Chain and India becoming increasingly

important6.Although emerging markets present new opportunities for exporters, it

is likely that the majority of the UK’s trade will continue to be with its established

export partners for the foreseeable future.

0%

10%

20%

30%

40%

50%

60%

Value of Goods Exports by Country Group, 2012

East Midlands England

Source: HMRC Trade Statistics, 2013

Foreign Direct Investment is very important to the D2N2 economy, with the

presence of a large number of firms with a global reach. In terms of overall job

6 This applies only to those businesses using the Chamber’s export documentation

services and does not capture the export markets of the larger businesses who produce their own export documentation.

creation through Foreign Direct Investment, the D2N2 LEP is one of the top

performing LEPs in the country. During 2011/12, 2,299 jobs were created

through FDI, which places D2N2 fifth amongst the 39 LEPs in the country.

Nearly 14% of employment (14th highest out of 39 LEP areas) and 20% of

turnover (20th out of 39) is within foreign-owned firms. This highlights the

continued importance of FDI in the area.

12,665

9,291

7,354

2,459 2,299 2,170

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

London Greater Manchester

North East Greater Birmingham &

Solihull

D2N2 Tees Valley

One of the Top Performing LEPs - FDI Employment 2011/12Source: UKTI Inw ard Investment Report

The inward investment agencies across the D2N2 area work closely with UKTI

and have developed bespoke offers for potential investors, based on the

strengths of each local area. The excellent transport links, central location,

existing sector specialisms, innovation track record and skilled workforce all play

an important part in attracting foreign investment.

Page 29: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

29

Strength in Depth – Sectoral Opportunities in D2N2

Whilst D2N2 is a diverse economy with specific sector strengths across the

geography, we have identified eight priority sectors in which D2N2 is already

strong or has the capacity to grow7. We will prioritise activity that supports

these sectors but we will remain agile to support growing businesses in other

sectors, including the wider advanced manufacturing sector. We will

respond to emerging growth opportunities across the economy, recognising

that much of the employment growth in the D2N2 economy over the next ten

years will occur outside these sectors, particularly in private service sectors

and newly emerging sectors.

We also recognise that there are strong cross-sector linkages, both between

the priority sectors, and between the priority sectors and other parts of our

economy, and will ensure that our support for priority sectors has regard to

their connectivity with other parts of the D2N2 economy.

7 The activities covered by each of these sectors are summarised here. Detailed SIC

definitions are included in our State of the Economy report: Transport equipment manufacturing- Manufacture of motor vehicles and other transport equipment; Life Sciences – Includes the manufacture of medical instruments and basic pharmaceutical products, manufacture of irradiation, electromedical and electrotherapeutic equipment, retail sale of medical and orthopaedic goods, wholesale of pharmaceutical goods, and research and development in natural sciences; Food and Drink manufacturing – Manufacture of food and beverage products; Construction – includes construction of buildings, civil engineering and specialised construction activities. Visitor economy – Includes hotels, food services, travel agency activity, entertainment activities, libraries, museums and sports activities; Low Carbon Economy – not defined using SIC codes due to difficulties in mapping low carbon activities to the SIC structure. BIS definition used Transport and Logistics – Includes land transport, air transport, water transport, warehousing activities and courier services; Creative Industries – Includes motion picture activities, sound/radio, photographic and design services, advertising, media activities, printing and publishing activities and computer programming.

TRANSPORT EQUIPMENT MANUFACTURING

The D2N2 area is synonymous with the transport equipment manufacturing sector,

given the presence of a number of large and globally significant employers such as

Toyota, Rolls Royce and Bombardier and their significant local supply chains, areas

across Derbyshire and Nottinghamshire. The current strength is built on many years

of innovation and manufacturing expertise, with Derby celebrating 175 years of rail

manufacturing in 2014, and Raleigh Bicycle Company established in Nottingham in

1890. The sector is concentrated in Derby and South Derbyshire, with links along the

A50 to Staffordshire. The sector covers the production of aerospace, automotive and

rail transport vehicles and is 40% more productive in D2N2 than elsewhere in the UK.

The importance of the sector is recognised in the UK Industrial Strategy and, despite

increasing global competition, it is likely to remain an important driver of the D2N2

economy. The sector is complemented by strengths in the area’s research base,

particularly at the School of Mechanical Materials at the University of Nottingham.

Although not part of the manufacturing sector, there are linkages to transport

innovation and information technologies in which our Universities play a leading role.

Employment 2012: 20,200 (BRES)

LIFE SCIENCES

Another of the Industrial Strategy’s priority sectors, demand in the life sciences sector

is being driven by new and developing technologies, growing global wealth and an

ageing and better informed population. The sector is particularly important in

Nottingham where it is a key driver of innovation. D2N2 is home to over 200 medical

technology firms.

D2N2 has experienced significant employment growth over recent years particularly

in the manufacture of basic pharmaceutical products and medical and dental

instruments. This growth builds on historical strengths in the sector, including the

presence of a significant pharmaceutical sector, the HQ of Alliance Boots (one of

D2N2’s most significant employers with c.11,000 staff8) and the presence of BioCity

8 Please note, employment at Alliance Boots does not fall within our definition of the

Life Sciences sector and is classified as ‘Dispensing chemist in specialist stores’ in the Standard Industrial Classification codes

Page 30: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

30

and MediCity in Nottingham. It is a nationally significant sector and provides an

opportunity for niche producers and university spin-outs. The manufacture of medical

and wearable devices, whilst a relatively small sub-sector, is a particularly high value

sub-sector of manufacturing with a high level of R&D activity.

Employment 2012: 7,200 (BRES)

FOOD AND DRINK MANUFACTURING

Nearly 17,000 people are employed in food and drink manufacturing, with particular

concentrations in the Peak District, Newark & Sherwood, Bassetlaw and Amber

Valley, and especially in rural areas because of links to D2N2’s important agricultural

base, with the agri-food sector continuing to grow during the recession. D2N2 is

home to many blue chip food manufacturers, including Thorntons, Warburtons,

Nestle, Greencore, British Sugar and Pork Farms, in addition to a vibrant SME base

across the urban and rural landscape, with high quality goods of world renowned

provenance. .

he area benefits from a vibrant farming sector, employing over 10,000 people on

farms and generating over £500m per year to the economy. Our excellent

connectivity to the rest of the UK enables the rapid distribution of food and drink

products and close access to markets. The sector is also relatively productive in the

D2N2 economy with output per full-time employee estimated to be 5.5% higher than

the sector in the UK overall. It is a source of secure employment in roles ranging

from high tech, professional and managerial occupations, including food scientists,

engineers etc, to lower skilled roles appealing to a broad section of the workforce.

Dedicated training is provided for the sector by organisations including New College

Nottingham, University of Derby in Buxton and School of Artisan Food.

Employment 2012: 17,000 (BRES)

CONSTRUCTION

The construction sector employs over 40,000 people in D2N2, a very significant

number but substantially lower than was the case before the onset of the recession in

2008/9. As elsewhere, the sector’s future growth prospects in D2N2 are intrinsically

linked to the performance of the local and national economies; however, the

construction sector can play an important role in generating additional economic

activity, with every £1 invested in house-building generating nearly £3, through wages

and profits, spending with suppliers (including the aggregates / minerals industry –

Derbyshire is the largest producer of minerals in the UK) and spending in the wider

economy. An important issue for the construction sector in D2N2 is to ensure that

businesses are able to access both public sector and private procurement

opportunities, and are able to find the training they need to upskill their workforce.

D2N2 has a number of large employers including Morgan Sindall and Bowmer and

Kirkland, and the construction sector locally is relatively productive with output per

worker estimated to be 9% higher than in the UK overall and accounting for 8.7% of

GVA in the D2N2 area. It is also an important provider of skilled jobs and training /

apprenticeship opportunities for young people together with ‘up-skillling’ of the supply

chain in collaboration with larger businesses. There are also emerging specialisms in

low carbon construction, retrofit and renewable technologies..

Employment 2012: 40,000 (BRES)

VISITOR ECONOMY

The visitor economy sector covers those activities which are directly associated with

tourism, including hotels and restaurants, museums and cultural attractions, as well

as activities relating to sports and the wider cultural sector which attract and service

domestic and international visitors for business and leisure. The D2N2 economy has

some key assets notably quality of our environment, including the iconic landscapes

of the Peak District and Sherwood Forest. We also have a variety of stately homes,

historical buildings including the Derwent Valley Mills Unesco World Heritage Site,

cultural attractions, sporting venues including Derby’s Multi Use Sports Arena and

Nottingham’s Trent Bridge and our waterways. Recent research commissioned on

behalf of our visitor economy sector has demonstrated the need for capital

investment in our visitor attractions in order to continue to attract visitors to our area.

Employment in the sector has fluctuated considerably over the past four years but is

currently over 65,000 in the D2N2 area, and there is the potential to increase

employment by exploiting new opportunities and markets, such as the growth of

cycling as a leisure pursuit, the crescent restoration in Buxton, one of England’s

leading spa towns, and the development of assets such as Sherwood Forest,

Page 31: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

31

Cresswell Crags, Derwent Valley Mills, Newark’s National Civil War Centre and the

Nottingham Castle Project. There are a number of visitor economy opportunities we

wish to pursue, including the business tourism market, festivals and events, tactical

marketing, branding and gateways and hubs, and we will produce a Growth Plan for

the visitor economy early in 2014.

Employment 2012: 65,300 (BRES)

THE LOW CARBON ECONOMY

With ambitious and legally binding targets set in relation to carbon reduction to 2050.

D2N2 plans to use our competitive advantage to build on expertise in the low carbon

transport technologiesand dual fuels sector, including Toyota and Rolls Royce, and

data from DECC suggests employment in the low carbon economy here is amongst

the highest of all LEP areas. The D2N2 area importantly also has significant research

expertise in this area. D2N2 is also a significant contributor to power generation in the

UK, with the potential to exploit the move to more renewable sources of energy.

The significance of climate change and the low carbon economy is also likely to

present commercial opportunities for the entire D2N2 business base either through

the development and provision of low carbon goods and services, including low

carbon housing and retrofit or through savings in areas such as energy or waste

reduction, providing a market for local low carbon economy businesses.

Employment 2011/12: 28,700 (Low Carbon Environmental, Goods and Services,

Report for 2011/12, Department for Business Innovation and Skills, July 2013)

TRANSPORT AND LOGISTICS

The transport and logistics sector covers freight movements activities such as land

transport, air and water transport, warehousing and courier services and is a

significant employer in D2N2 with over 28,000 employees. The sector makes an

essential contribution to the success of many other sectors, providing the means

through which supplies are obtained and goods are transported to markets locally,

nationally and internationally, and is also closely associated with the transport

equipment manufacturing sector.

Located at the heart of the UK, D2N2 benefits from a number of major road and rail

links (for both passengers and freight). Key current and future assets which benefit

the D2N2 economy include East Midlands Airport and the proposed strategic rail

freight hub to the north, and the HS2 line will run through D2N2 with a proposed

station at Toton. Within the D2N2 area, major employers include East Midlands

Trains (based in Derby), and new employers, such as Kuehne & Nagel Drinkflow

Logistics, have been attracted to the area because of its strategic location.

Employment 2012: 28,600 (BRES)

CREATIVE INDUSTRIES

The creative industries sector accounts for around 5% of economic output nationally,

and a similar share of employment. The sector is an important international strength

for the UK, and a growing source of export earnings. In D2N2, the sector has over

26,000 employees with the two cities accounting for around 40% of this total. It is

likely that this figure understates the true employment level as the large number of

sole traders and micro businesses in the sector may not be captured by official

datasets.

Creative industries is a wide-ranging sector, taking in video, film and photography,

music, publishing, radio and TV, computer games, social media and the software that

supports these industries and the telecommunications sector. The sector has been

growing rapidly at the national level and makes an important contribution to the

success of other sectors, supplying services such as digital technologies and

software to sectors including the automotive, bio-science, construction sector and the

visitor economy, and encouraging innovation and design quality.

Particular employment specialisms in D2N2 lie in computer and software (especially

in computer gaming and medical technology applications). There is a cluster of

creative industries in the Dukeries area of Nottinghamshire (including the Harley

Gallery, Thoresby Gallery and the School of Artisan Food) and the Creative

Greenhouse initiative provides networking opportunities.

There are opportunities for growth across the cities and counties, with Nottingham’s

Creative Quarter and Cromford Mills (within the Derwent Valley Mills World Heritage

Site) just two such examples along with the key role of enhanced digital connectivity.

Employment 2012: 26,500 (BRES)

Page 32: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

32

Employment, Occupations and Skills

Economic activity rates in D2N2 are in line with the national average, having

closed the gap over the past couple of years. Amongst those who are

inactive, a higher proportion in D2N2 are retired than is the case nationally,

and there are particular concentrations of long-term sickness in areas

affected by industrial decline.

Overall employment rates are close to the national average, with over 70%

of the working age population across the area either employed or self-

employed but there is significant variation within the area with employment

rates ranging from 81.8% in Erewash to 57.2% in Nottingham.. The

relatively low levels of productivity and earnings are explained by the

occupational profile, with employment skewed towards skilled trades,

operatives, elementary and other service occupations, and an under supply

of professional and associate professional occupations.

11%

9%

11%

8%

13%

9%

12%

10%

17%

12%

9%

11%

8%

14%

10%

12%

10%

16%

10%

6%

11%

8%

11%10%

14%

9%

20%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Skilled Trades Process, Plant and Machine Operatives

Administrative and Secretarial

Sales and Customer Service

Elementary Managers, Directors and Senior Officials

Associate Prof & Tech Occupations

Caring, Leisure and Other Services

Professional

Occupational Profile 2012Source: APS, workplace analysis

D2N2

East Midlands

England

Although accounting for a smaller share of jobs in D2N2 than is the case

nationally, there has been a significant growth in professional occupations,

which have risen by nearly 33,000 during the period 2004-2012, and will be

of continuing importance to the future growth of the D2N2 economy.

The occupational profile reflects the skills available within the D2N2

workforce. Whilst almost 400,000 people are educated to degree level,

equating to 29% of the total, this is 4% lower than the England-equivalent

level of 33%. To attain the national average, there would need to be another

54,000 people qualified to degree level. Around 150,000 people aged 16-64

have no qualifications, leaving them at risk of poorly paid, insecure work and

periods of unemployment. These lower than average skills levels contribute

to below-average productivity and earnings in D2N2 and the effects are seen

across the economy. Skills levels vary across the D2N2 area. In Derby and

Derbyshire there is a greater demand for level 3 / technician level skills whilst

in Nottingham, there is stronger demand for lower skilled jobs in sectors such

as retail and health.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

NVQ1+ NVQ2+ NVQ3+ NVQ4+ No qualif ications Trade Apprenticeships

Skills Levels of Working Age Population 2012Source: APS

D2N2 East Midlands England

Page 33: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

33

D2N2 has seen a significant improvement in the educational achievement of

its young people, with nearly 60% now achieving five good GCSE grades.

Despite this improvement, there is still concern amongst employers about

the job readiness of those entering the labour market, and an on-going need

to support the 4 in 10 who fail to achieve good GCSE grades, and ensure

they are equipped for success in the 21st century labour economy.

40

42

44

46

48

50

52

54

56

58

60

2007/8 2008/9 2009/10 2010/11 2011/12

% a

chie

vin

g 5

+ A

*-C

GC

SE's

Pupils achieving 5+ A*-C grade GCSEs including English and Maths 2007-2012

England East Midlands D2N2

Source: National pupil database and Key stage 4 attainment data

As is the case nationally, there has been a significant increase in uptake of

apprenticeships within D2N2 over the past three years, with over 23,000

starts in 2011/12. This has been driven by an increase in the number of

older apprentices, and there is more work to do to encourage young people

to take up (and employers to offer) apprenticeships pre-19. Two-thirds of

apprenticeships in the D2N2 area are at intermediate level (L2), and there is

a need to provide progression routes at advanced and higher level.

Rural Economies and Communities

“I am lucky to live and work in the Peak District, which is an important part of

D2N2's rural area - the Peak inspires me and my team every day. The large

industrial cities that border the Peak are important as areas of large scale

employment - but a vibrant and successful rural economy is crucial in

attracting and retaining high quality people to the area as both residents and

day visitors.

There are many barriers to growth, but the Peak has a great track record in

producing a multitude of small but highly success businesses - D2N2

understands and recognises this and has listened to the aspirations of the

rural community. Many of the issues that face rural businesses mirror those

of our urban colleagues - but connectivity is an area where we seem to be

falling further behind, in terms of both broadband and "beyond 3G" - both of

which are crucial for the type of businesses that suit the Peak and the visitor

economy to thrive.”

Jim Harrison, Managing Director, Thornbridge Brewery and Chair of

Business Peak District

D2N2 includes a significant rural population in addition to the main towns

and two cities, and the rural economy plays an important role in the health of

the area’s overall economy, with over one-third of D2N2’s total employment

in predominantly rural local authority areas.

The rural parts of D2N2 are affected by many of the same economic issues

as the urban parts of the area. However, the rural areas (whilst by no means

homogenous) also experience some specific economic challenges,

particularly with regards to connectivity (both travel to work, education and

leisure opportunities and digital connectivity), housing availability and

affordability and access to economic opportunities. The natural environment

of our rural areas is a key economic asset for D2N2 with growth in areas

such as the Peak District requiring sensitive management.

Page 34: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

34

The predominantly rural local authority areas within D2N2 perform well, with

key characteristics including:

Higher levels of employment growth during the period 1998-2008

than the urban local authority areas within D2N2;

A dynamic business base, with a large number of small firms across

a range of sectors, many with growth potential;

High economic activity rates, a higher proportion of residents with

higher level skills and lower proportion with no qualifications than

elsewhere in the D2N2 area.

An important agricultural sector which continues to play a key role in

food production, as well as maintaining and enhancing the

attractiveness of the environment and contributing to the visitor

economy.

Despite this, a number of challenges are faced by rural areas including

difficulties faced by the area’s agricultural sector, an over-reliance on public

sector employment, low levels of earnings (often masked by higher wages

amongst residents who commute to work in the surrounding conurbations),

and a lack of dynamism amongst the business base.

There is a need to protect and retain local facilities within the key market

towns, following the loss of some important rural employers, either due to

them ceasing trade (e.g. linked to the coal industry in Newark and Sherwood

and Bolsover) or relocation to urban areas and major transport routes.

Page 35: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

35

Economic Infrastructure and Transport

As a location that has a range of export-led sectors including aviation,

automotive manufacturing, and bioscience, with a global customer base,

D2N2’s economic and transport infrastructure is fundamental to its economic

performance.

D2N2 Connectivity

D2N2 lies at the heart of the UK. With a population of 2.1 million, and

geographical proximity to other major cities in the Midlands and North and

within easy reach of London, D2N2 benefits from large domestic markets,

deep supply chains and large labour pools to meet the needs of current and

future businesses. The plan to the right shows the economic linkages to,

from and within the D2N2 area.

D2N2 is an export-oriented economy with a strong dependence on

international gateways. For example, in 2013, exports from the East

Midlands were worth £21.48bn9. Access to global markets via ports and

airports, supported by effective strategic road and rail connections, is critical

in meeting the area’s growth requirements.

Current and planned investment in strategic road and rail freight-corridors

will significantly improve capacity and reliability for freight movements to key

ports. Improvements to the A160 will enhance access to Immingham and

the long-awaited upgrade of the A14 near Cambridge will significantly

improve road connections to Felixstowe. Core rail freight corridors connect

to Immingham and Felixstowe and the planned ‘Electric Spine’ programme

will further improve rail freight connections to the Port of Southampton.

East Midlands Airport (EMA), located just 14 miles from the centres of

Nottingham and Derby, is the UK’s 2nd

largest air freight hub after Heathrow

and is a critical economic driver for the region. It is estimated EMA

9 http://www.d2n2lep.org/News/east-midlands-exports-worth-a-record-2148bn-in-

2013

generates £239m in GVA each year. The Airport is currently in the process

of redeveloping its passenger terminal and has recently published its

Sustainable Development Plan for consultation, which plans for increases in

traffic from 4.3 million passengers and 300,000t freight in 2013 to 10 million

passengers and 700,000t freight in 2040. D2N2 is engaging closely with

both East Midlands Airport and LLEP to support the growth objectives of the

Airport and we will work together to maximise the ability of the airport to

support the wider East Midlands regional economy.

Page 36: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

36

The importance of the M1 J23a/24 area within North West Leicestershire for

high-value freight will be further strengthened with planned investment in a

major intermodal rail freight interchange by M1 Junction 24, which is now

being considered by the Major Projects Unit at the Planning Inspectorate.

We will be working with LLEP to capitalise on the transformational impacts of

this project, which could bring more than 6,000 new jobs to the area. This

will create a dynamic regional economic hub, East Midlands Gateway,

which is strongly supported by both LLEP and D2N2 LEPs.

Robin Hood Airport, located within Sheffield City Region, plays an important

role for the north of the area, with a focus on flights to passenger

destinations across Europe.

D2N2 is strongly dependent on other airports for global connectivity,

including Heathrow, Manchester and Birmingham. Birmingham Airport has

ambitious plans for expansion, capitalising on the arrival of HS2 and the

development of UK Central, as set out in the Greater Birmingham and

Solihull SEP. Birmingham will play a critical role in connecting the D2N2

area to global markets, and improved transport connections to the Airport will

be critical for our economy. The Airport is only 49 miles and a one hour drive

by car from Nottingham but rail connections are poor, with a journey time of

over 90 minutes to Birmingham International railway station. In the longer

term, the arrival of HS2 will transform connections between D2N2 and

Birmingham, but early action is also needed to address this weakness.

Much of the D2N2 area also looks to Manchester Airport for international

connections: High Peak has good rail connections to the airport via central

Manchester, and road links will be significantly improved with the completion

of the A555 eastern link, providing direct road access from the A6 corridor.

The strategic road network plays a critical role in connecting to both the

international gateways and other major cities. The M1 and A1 provide good

north-south corridors, the A42 and A38 connect to the West Midlands and

the A50 connects to the North West via Stoke-on-Trent. These good

connections are reflected by large retail distribution centres along the M1,

A50 and A38 corridors. The recent dualling of the A46 has improved links in

the east of the area and the project to improve the A453 between

Nottingham and the M1 will transform connectivity to the city and south

Nottinghamshire on completion in 2015, with improvements to journey times

and journey reliability for business and leisure users, making the city a more

attractive location for potential investors.

There remain major challenges, with high levels of congestion on the M1

north of Junction 28, the A38 in Derby, A52 Nottingham Ring Road, A46 at

Newark and A628/A57 near Glossop, impacting on business through

increased operating costs within the area and beyond. The costs of

congestion on the strategic road network in the East Midlands are forecast to

rise to around £0.7 billion in 2025 in the absence of intervention10

. The

Highways Agency is, however, delivering or planning improvements to key

routes to increase capacity and manage expected growth. These include the

Smart Motorway upgrade to the M1 Junctions 28 – 31 and planning for the

A38 Derby Junctions improvement.

The plan below shows the current primary congestion hotspots across the

region.

10

Costs of Congestion in the Regions, Atkins for RDA Transport Network, 2009. The approach used the National Traffic Model and was based on comparing actual vs free-flow traffic speeds and application of WebTAG values of time.

Page 37: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

37

The frequency and speed of rail connections to other parts of the country

are variable, constraining connectivity for business journeys. For example,

poor journey times mean that it is harder for business to business interfaces

to take place, and thereby to deliver agglomeration benefits. Services from

Nottingham, Derby and Chesterfield to London are significantly slower, by up

to 30 minutes, than connections from the West Midlands to London. The

East Coast Main Line in the east of Nottinghamshire offers faster journey

times, although levels of investment have been lower than on other routes.

The rail network is also not playing a sufficient role in catering for travel

needs in the area, with limited network penetration, low frequencies and

relatively long journey times between towns, resulting in high car

dependence and congestion on inter-urban corridors. However, the recent

£150m investment by Network Rail in the Nottingham area has reduced

delays and significantly improved capacity to accommodate increasing

numbers of passengers for both long distance and local rail services. Our

key rail challenges are shown below.

Page 38: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

38

The planned electrification of the Midland Main Line will be an important

basis for improving service quality, carbon reduction cost efficiency, but

further infrastructure improvements will be required to significantly improve

journey times. We will be working with Network Rail, Sheffield City Region

and LLEP to secure early investment in critical line speed improvements at

Market Harborough, before electrification works commence.

Cross Country services connect to Birmingham, the south west and the

north, but there are challenges with journey times and train capacity leading

to crowding. Rail journey times between Nottingham and Birmingham are

poor, with very low line speeds between Nottingham and Derby at Trent

Junction.

Other services, operated by East Midlands Trains (the region’s main

operator) and Northern Rail, connect to Sheffield, Leeds, Manchester, Stoke-

on-Trent, Leicester and East Anglia. Many of these services (particularly

Nottingham to Leeds) have long journey times and offer a poor alternative to

driving. The Lincoln – Newark – Nottingham line only currently has hourly

trains: this corridor would benefit from increased frequencies and is a key

priority for improvement. The D2N2 area also has a number of former freight

lines that offer the potential to open up access to the rail network for

currently untapped markets, for example the Dukeries area. We will also be

seeking to strongly influence the future East Midlands franchise, which is due

for renewal in the Plan period.

The future arrival of HS2 will transform the prospects of the D2N2 area, as

well as Leicester and Leicestershire. The proposed hub station will benefit

from high speed services to London, Birmingham, Sheffield and Leeds,

allowing businesses to access customers quickly and reliably. The key

challenge will be to ensure fast and reliable connectivity to the hub station

from our key towns and cities to ensure that we fully harness the

transformational potential of this investment to benefit the whole D2N2

economy. In addition, the Peak area of our region will benefit from the future

hub stations at Manchester Piccadilly and Manchester Airport, and we will be

engaging with Greater Manchester LEP and other partners to enhance rail

connectivity from Buxton and Glossop to these hub stations to ensure local

residents have access to opportunities in Manchester.

Our local transport networks reflect the diverse geography of the area,

with a range of challenges impacting on the local economy. A fully

operational and resilient network is essential for the economy to function.

Management of highway assets and ensuring adequate resilience to the

effects of climate change and flooding are a growing challenge. Congestion

is also a major problem in the urban areas and is holding back the potential

of our two cities as engines of growth. Delays as a result of congestion

impact on operational costs for businesses who have to factor in excess time

into schedules to meet delivery times, resulting in unproductive activity. The

cost of congestion is equivalent to around £300 per employee in Nottingham

and Derby and will more than double by 202511

.

The D2N2 area has a proven track record in delivering effective local

transport solutions to support growth. We are working in partnership with

bus operators to deliver high quality networks that are successfully attracting

a wide range of users and travel needs. Nottingham Express Transit (NET)

is regarded by many as the most successful light rail project in the UK.

Good progress is being made with the construction of the Nottingham hub

and new lines to Clifton and Chilwell and services are on track to start in

winter 2014, complementing an excellent bus network with 50 new electric

buses coming into operation in the next two years alongside a smartcard

enabling integrated ticketing. Derby successfully delivered a Cycle City

programme and major transport improvements to the city centre, and public

transport improvements have been delivered in towns across the D2N2 area.

Walking, cycling and public transport are viable, attractive and increasingly

popular travel choices in the two cities. Notable successes are being

11

Costs of Congestion in the Regions, Atkins for RDA Transport Network, 2009. The approach used the National Traffic Model and was based on comparing actual vs free-flow traffic speeds and application of WebTAG values of time.

Page 39: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

39

delivered through our current Local Sustainable Transport Fund

programmes, which are helping to tackle congestion, reduce business costs

and unlock growth. Derbyshire has also secured funding for major

improvements to cycle routes in the Peak District, as well as the expansion

of cycle trails in North East Derbyshire, which will play a key role in helping

to support development of the visitor economy. In contrast, many rural areas

face challenges with the viability of local bus services, with implications for

access to education, jobs and training. Focused intervention will be required

to tackle gaps in bus provision to enable young people and job-seekers to

access opportunities, such as Nottingham’s discounted travelcard for

jobseekers.

We are also delivering programmes to unlock access to our priority

employment sites and strategic housing locations, including multi-modal

access solutions alongside targeted highway improvements to tackle the

effects of increased travel demand, for example, committed LTB schemes

such as the Seymour Link at the Markham Vale Enterprise Zone.

We have therefore developed a coherent strategy to improve connectivity

and unlock growth, based on clear evidence on the diverse needs of different

parts of the D2N2 area.

Employment Locations

Whilst there are a wide range of employment locations across the D2N2 area

(including in both the rural and urban parts of the area), the quality of the

sites available is not always suitable for today’s commercial occupiers, and

the balance between office space and industrial locations is more heavily

weighted towards industry in D2N2 than nationally which reflects the

previous reliance on traditional industries, and may not be appropriate for the

economy of the 21st century.

Rateable values are lower than in other locations (with the exception of some

premium city centre sites) which makes speculative commercial

development difficult, leading to a lack of availability in some areas

(particularly rural areas and those with weaker economies).

Assisted Area status is a crucial factor in making some of our employment

locations more attractive to businesses and supporting economic growth in

areas of need. The rules on population coverage, contiguity and ‘doughnuts’

mean that many other areas which would benefit from Assisted Area status

(particularly in our more remote and rural areas) cannot currently be included

on our Assisted Areas map.

Digital Connectivity

Technology is increasingly linked to economic competitiveness, and high

levels of IT skills amongst the labour force and access to high speed

broadband connections are playing an increasingly important role in the

success of local economies. Digital connectivity is a vital utility for business

and is fundamental to achieving economic growth.

The quality of digital connectivity within the D2N2 area varies. In general,

connectivity is better in urban areas, although insufficient speed has been

reported in certain areas (including areas in which significant development is

planned, such as the Creative Quarter in Nottingham and Pride Park in

Derby). In rural areas, the lack of a high speed broadband network inhibits

business growth and leaves residents at risk of digital exclusion.

To address this, BDUK Superfast Broadband programmes are underway in

both Derbyshire and Nottinghamshire, with the aim of providing 95% of

premises with access to superfast broadband by the end of 2015.

Page 40: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

40

Housing

There are just under 900,000 households in D2N2. In recent years, the

growth in housing stock in D2N2 has largely kept pace with the national

average. Between 2001 and 2012, there was a net increase of nearly

72,750 dwellings in D2N2, an increase of 8% which is slightly below the

increase nationally (9%)12

.

However housing supply, both in D2N2 and nationally, has not kept pace

with demand. House building slowed considerably as a result of the credit

crunch and subsequent recession. Prior to the recession, housing stock had

increased by 1% per annum. The rate of increase fell to 0.5% per annum

after 2008, as shown in the diagram.

840,000

850,000

860,000

870,000

880,000

890,000

900,000

910,000

920,000

930,000

940,000

950,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Dw

ellin

gs

Increase in D2N2 Housing Stock - Impact of the Credit Crunch

Housing stock Housing stock post-credit crunchSource: CLG

12

Source: Housing stock, Department for Communities and Local Government.

Five housing market areas have been identified within D2N2, although in

practice there is considerable overlap within and between these areas, and

links to adjacent areas outside the D2N2 boundary. Each faces their own

particular housing market challenges and opportunities:

The Nottingham housing market area, stretches beyond the city to

include Broxtowe, Gedling, Rushcliffe and Erewash. This housing

market is one of contrasts, with increasing affluence in some areas

and high levels of deprivation and poor quality housing in others, and

there is a need to prevent polarisation in the market and renew the

housing stock. A significant proportion of the additional housing

required in D2N2 will be delivered within this area;

The northern area, covering north Derbyshire and Bassetlaw, which

has significant clusters of deprivation and a need to improve the

quality of the housing stock. Development has been slowed by the

economic downturn and there is an overall lack of investment, with

the relatively low prices holding back both development and stock

renewal;

The Peak sub-region, covering High Peak and Derbyshire Dales,

faces real challenges of affordability, given the relatively low wages

earned by many residents and the attractiveness of the area to

mobile, highly skilled and well-paid workers. Increasing the supply

of affordable and first homes is a priority, as is maintaining the

viability of smaller settlements and villages;

The Sherwood Forest area, taking in Mansfield, Ashfield and

Newark & Sherwood, has been affected by industrial restructuring,

which has resulted in a housing stock that does not meet the needs

of local residents in terms of either quantity or quality. Local

priorities include increasing development to increase the range of

housing available and provide more choice for local people, with

Page 41: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

41

significant growth planned for Newark as part of the Newark / Lincoln

/ Gainsborough / Grantham growth area; and

The Derby housing market area, covering the city of Derby and

surrounding areas, where significant population and household

growth is envisaged, and the challenge will be to manage this whilst

minimising the impact on the environment and responding to the

increased demand for local services.

Along with many other parts of the UK, the population in D2N2 is forecast to

grow, with figures from the Department for Communities and Local

Government indicating that an increase of circa 77,000 households is

expected by 202113

. The fastest growth is expected in Derby and south

Derbyshire. This level of household growth will both be driven by and

contribute to employment growth in the D2N2 area.

In recent years, the number of completions has fluctuated between 2,500

and 3,500, and the number of starts between 2,000 and 3,00014

. This will

not be sufficient to meet the 7,700 additional households per year that the

DCLG figures suggest will be needed, nor the housing building levels set out

in the Local Authorities’ Local Plans (circa 6,000 per year). The chart below

shows the gap between the net annual increases in housing stock over the

past four years and the level of demand forecast by DCLG. The conclusion

is that stronger and closer collaboration is needed between D2N2 partners

and the development community to ensure that delivery of new housing

stock can meet demand.

13

Source: Household projections, Department for Communities and Local

Government 14

Source: Housing Statistics, Department for Communities and Local Government. Full data is not available from all local authorities for every year.

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Dw

ellin

gs

Housing Supply - Past Trends and Future Demand

Net increase Projected required increasaeSource: CLG

Page 42: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

42

Opportunities and Challenges for D2N2

This section summarises the opportunities and challenges faced within the

D2N2 area and the impact these have on potential growth. Our

understanding of these opportunities and challenges has shaped the

development of programmes of activity in each of our strategic priorities, set

out in the following sections.

Barriers to Growth in D2N2

The D2N2 partners are already working to overcome barriers to growth

through the use of resources secured by the LEP, including Growing Places

Fund and Regional Growth Fund. This work builds on the core activities of

partners including the local authorities, FE and HE providers, and national

partners including the HCA, to address the challenges faced within the D2N2

economy.

Barriers to Business Formation and Growth

Businesses in the D2N2 area are affected by a range of barriers which

prevent them from achieving their full potential in relation to sales,

productivity and employment. Whilst these are not unique to D2N2, there

are a number of local solutions which could help to address them:

Access to funding to support business formation and growth –

businesses have faced the double challenge of a lack of internal

funding to support growth (given the challenging trading conditions

which many have faced in recent years), combined with difficulty in

accessing external funding in the aftermath of the credit crunch.

Access to capital to support business formation has been a

particular challenge.

Low levels of enterprise and entrepreneurialism in D2N2 – the

LEP area has only 314 businesses per 10,000 resident population

compared to 399 nationally, and has experienced a greater decline

in business starts than other areas since 2007.

Underinvestment in innovation and R&D, resulting from

uncertainty over the potential returns, and difficulties in businesses

finding the support they need. There are knock on effects for

productivity, which is already lower in D2N2 than in many other

areas.

A lack of co-ordinated financial support and expertise available to

SMEs looking to develop business growth and improvement

plans, which could lead to productivity improvements and increased

employment.

Challenges in Improving Workforce Skills

A more highly skilled workforce would support a more prosperous D2N2

economy by undertaking higher value activities and generating higher levels

of GVA per head. Barriers to improving workforce skills include:

Too many young people leaving education without the skills and

aptitudes sought by employers.

The subject and career choices made by young people, with many

not being sufficiently well-informed about the potential employment

opportunities open to them within the D2N2 area, and the

requirements for entry and progression.

Difficulties in retaining the graduates produced each year by

D2N2’s Universities, and attracting back those young people who

Page 43: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

43

leave the area to go to University elsewhere in the country, with

limited access to opportunities within the SME base for graduates.

Unwillingness / inability of businesses to invest in workforce

training, resulting from a range of factors including: the cost and

relevance of training and lack of return on investment data that

provides a demonstrable business impact from the investment made

(particularly in the light of changes to funding availability); fear that

trained staff will be poached by other employers; and inability to

locate appropriate training courses to meet specific skills gaps.

Lack of investment in workforce planning by companies in a

consistent and co-ordinated way, especially for SMEs, with many

organisations not recognising or planning how to transfer knowledge

from an ageing workforce to new talent over a long enough period of

time.

Economic Infrastructure Constraints

To achieve our ambitions, D2N2 needs an economic infrastructure which can

enable and accommodate significant employment and population growth.

The economic downturn has had a significant impact on the progress of a

number of major commercial developments across the area. Whilst

improving economic conditions may make some schemes more viable, they

will not address some of the key economic infrastructure barriers facing

D2N2 including:

Shortcomings in our connectivity, including long rail journey times

to other major cities, an under-exploited local rail network, delays on

strategic roads throughout the D2N2 area and poor accessibility in

some rural areas, all of which are increasing business costs and

access to employment, impacting on our competitiveness and

constraining growth.

The need for significant levels of investment in transport and

access improvements to bring forward some of our key commercial

and housing development sites (e.g. access to Infinity Park in Derby,

Seymour Link Road at Markham Vale, Nottingham Enterprise Zone,

City Centre regeneration and major housing development in Derby,

Nottingham and Newark) and address wider connectivity barriers.

Planning and development considerations can be seen to render

developments unviable in this context.

The need to improve access to town / local centres in order to

improve their economic vitality and maintain and enhance them as

local employment and retail areas.

Investment is needed to overcome constraints to the regeneration

of critical sites (e.g. flood risk preventing development at Derby

Riverside, updating services in urban brownfield sites, issues in the

remediation of sites in the coalfields areas).

The uncertainty over future returns which prevents commercial

investment in employment sites and premises, particularly in

smaller developments and rural locations.

Housing barriers including accommodating the population and

household growth expected across D2N2 over the next ten years,

particularly in the south and east of the area; encouraging private

sector developers to develop new homes by addressing financial

and transport barriers which are preventing plans from being taken

forward; and providing sufficient affordable housing (for sale and for

rent), particularly in the rural parts of D2N2.

Ensuring that all parts of D2N2 are able to benefit from

improvements in broadband connectivity, by providing investment

on an on-going basis where the market will not provide coverage of

a sufficient quality.

Page 44: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

44

Opportunities for Growth in D2N2

As one of the largest LEPs in population terms, D2N2 is currently punching

below its weight in terms of its economic contribution to national prosperity

and growth. There are a number of opportunities which D2N2 can capitalise

on, building on its tradition of innovation, manufacturing and export, the

presence of a number of world class Original Equipment Manufacturers

(OEMs) and its strategic location at the heart of the UK economy, one of the

most important being the development of HS2:

The development of HS2 will provide transformational

opportunities for the D2N2 economy, provided connectivity

between the hub station and Midland Main Line is maximised, as

well as providing significant opportunities for local businesses.

There is a need to begin the process of masterplanning around the

proposed station site so that the access improvements are in place

to maximise the benefits of the investment for all parts of the D2N2

area. There will be further opportunities from the proposed HS2

Maintenance Depot at Staveley and the proposed HS2 College in

Derby.

Capitalising on Business Opportunities

D2N2’s opportunities for growth are derived from an understanding of

national and international changes in business and consumer demand,

changes in technologies, and trends in national and global markets. The

factors include:

The resurgence of some parts of the manufacturing base and a

growing number of companies returning production to the UK

(although additional support is required to encourage businesses

who might be considering moving production back to the UK);

increasing exports for high value added products in sub sectors such

as transport equipment manufacturing.

The development of new materials and innovation, partly

stimulated by University research and the Technology Strategy

Board, led by agile medium sized companies. Innovations in

healthcare and advanced materials are particularly relevant to D2N2.

There is an opportunity to capitalise on the research strengths and

innovation infrastructure within D2N2’s universities, and ensure that

R&D activities are commercialised to the benefit of D2N2’s

businesses, focussing on D2N2’s priority and emerging sectors.

There is the potential to develop a culture of innovation

encompassing skills, enterprise and business investment, and

support this through investment in the innovation infrastructure,

developing strategic facilities and equipment that helps to embed key

businesses within the D2N2 economy and potentially attract inward

investment.

The presence within D2N2 of a number of major employers and

UK head offices, including Rolls Royce, Alliance Boots, Toyota,

Speedo, British Sugar, Thorntons, Capital One, Experian and

Bombardier, amongst others, creating employment opportunities

across a number of sectors as well as business services /

professional occupations.

Increasing demand for quality leisure opportunities, as the

international and European economies recover, provides the

potential to develop the visitor economy across the D2N2 area.

Particular opportunities are linked to the quality of the rural

environment, and the opportunity it offers for leisure pursuits such as

cycling, and the potential to develop D2N2’s high quality cultural

offer. In order to strengthen the visitor economy sector within D2N2

there is a need for capital investment in visitor attractions.

Increasing demand from international inward investors –

nationally, UKTI has reported an increasing number of investors from

Page 45: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

45

China, India and other parts of Asia choosing the UK, adding to

continued demand from Europe and the United States. D2N2

already has a strong multi-national presence and is the location for a

number of overseas investors, and has the potential to capitalise

further on its excellent national and international transport links, and

develop the supply chains linked to its priority sectors.

SMEs are recognised by BIS as the key enablers of business

success. SMEs account for 71% of employment but make up 99%

of businesses, and are an important source of innovation and

potential growth for the D2N2 economy, particularly within the rural

areas of D2N2.

There is an opportunity to grow the business base in D2N2 by

increasing entrepreneurialism and encouraging enterprise

amongst young people, students, graduates and the workforce in all

parts of the LEP area. Increasing awareness of enterprise as a

career option and providing an environment in which new business

start-ups can flourish is an important part of our overall package of

business support measures.

There are further key opportunities for SMEs in exporting and

procurement, with support required to help our businesses access

new markets both domestically and overseas.

Spatial Opportunities

The D2N2 economy takes in a range of markets and locations, which offer a

variety of spatial economic opportunities:

Enterprise Zones and other employment growth areas including

Markham Vale, the Creative Quarter in Nottingham, with a particular

focus on our priority sectors (e.g. Life Sciences at Nottingham EZ

and Transport Equipment Manufacturing at Infinity Park), but which

will also provide opportunities for supporting wider business growth,

including SMEs. Investment programmes for each area will be

focused on unlocking specific opportunities. In addition there is an

opportunity to secure a University Enterprise Zone within D2N2, to

provide a location for new, high-tech, innovative start-up businesses

which can benefit from University expertise.

Proactive response to population growth and housing demand

through planning for substantial housing growth in the east and

south of the area, focused in the Derby and Nottingham urban areas

as they extend into the shire counties, and Newark, with targeted

interventions to support growth in other key towns.

Priority regeneration areas, focused on physical interventions (e.g.

tackling flood risk constraints to development of critical sites, Green

Infrastructure and site remediation) to unlock new growth

opportunities in areas that are considered to be difficult to develop.

Targeted interventions to tackle our most pressing social exclusion

challenges, focused on the most deprived neighbourhoods in

identified deprived areas across the D2N2 LEP area, integrated with

our EU Structural Investment Funds programme.

Addressing the opportunities and challenges in our market towns,

villages and rural areas, building on the economic opportunities that

these parts of our area offer – e.g. fast growing and innovative small

firms, the agri-food sector and the opportunity to harness the

potential of the digital economy as superfast broadband is rolled out

– enhancing quality of life and improving access to opportunities.

Page 46: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

46

Our Approach and Key Programmes

Our Approach

The diagram shows the key programmes of activity we will undertake within

each of our five strategic themes – business support and access to finance,

innovation and employment and skills, infrastructure for economic growth,

and housing and regeneration. There are close links between the strategic

themes and in practice many of our programmes, whilst sitting within one

theme, are closely aligned with others, for example our sector development

programmes will draw on resources from the business support and access to

finance, innovation and employment and skills themes, and will also

influence investment through our economic infrastructure theme.

We will invest in a number of integrated activities, including rural

development, social inclusion and digital take-up, which will run throughout

the interventions across all five strategic themes.

Whilst our priority and emerging sectors will be the focus for our Sector

Plans and Skills Action Plans, we will adopt a flexible approach to ensure

that we are able to support and realise emerging growth opportunities across

the economy, encouraging a culture of enterprise and supporting all

businesses to achieve their growth potential.

All of our interventions will contribute towards our strategic target of creating

55,000 additional private sector employee jobs in D2N2 by 2023.

A more prosperous, better connected, increasingly resilient

and competitive economy

To make D2N2 the most

competitive and

sustainable business

location in the UK

To develop the skills of our

young people and our

workforce

To grow our key sectors

Our Vision:

Our

Strategic

Objectives:

We will

invest in five

strategic

themes:

By 2023,

we will have

created:55,000 additional private sector employee jobs

- Growth Hub

- Portfolio of

access to

finance

solutions

- Sector

Development

Plans

- Business

Growth Fund

- Building our

international

links

- Meeting key

sector needs

- Employability

& Enterprise

- Reducing

unemployment

- Increasing

employer

uptake

- Higher level

skills

development

- Skills Capital

Programme

- Strategic

Infrastructure

Packages

- East

Midlands

Connectivity

- Midland

Mainline

Connectivity

- Superfast

Broadband

Connectivity

- Innovation

Programme,

incorporating

infrastructure;

skills; R&D;

graduate

talent; finance;

and networks

Business

Support and

Access to

Finance

Employment

and Skills

Infrastructure

for Economic

growth

Innovation

Our priority

sectors are:

Transport

Equipment

Manufactu

ring

Life

Sciences

Cons-

truction

Food and

Drink

Manufacturing

Visitor

Economy

Low

Carbon

Goods and

Services

Rural development Social inclusion Digital take-up

We will invest

in integrated

activities

including:

We will also support and realise emerging growth opportunities across the economy, and

encourage a culture of enterprise

Our key

interventions

will be:

Housing and

Regeneration

- Key sites

programme

- Accelerating

the delivery of

affordable

homes

- Re-balancing

our estates

Creative

Industries

Transport

and

Logistics

Page 47: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

47

The D2N2 SEP – Our Key Programmes

D2N2 Growth Hub – we will simplify the business support landscape and drive up

business growth by providing a single point of contact for businesses, providing

expert and tailored advice ranging from enterprise and start-up support, to

business improvement and international trade activity.

A portfolio of Access to Finance solutions – D2N2 LEP will work with partners

including other Local Enterprise Partnerships to promote and facilitate the

availability of a range of business finance solutions to ensure local businesses

can access the financial support they need to grow.

Sector Development Plans – for each of D2N2’s priority and emerging sectors,

we will publish an industry-led development plan, setting out the support the

sector needs to grow, covering business support, innovation and skills.

Business Growth Fund – we will build on the success of existing RGF-funded

activity in D2N2, using proven mechanisms to ensure excellent value for money,

supporting businesses to make capital investments to accelerate growth and

enable innovation, and sustaining visitor economy marketing campaigns.

Building our international links to promote trade and attract inward investment

to strengthen the resilience of our key sectors and develop the supply chains of

our OEMs

An Innovation Plan for D2N2 – building on our long history of innovation and

encompassing: infrastructure; skills; R&D; graduate talent; grants and finance;

and networks.

D2N2 Employability Framework – working with schools and employers to

ensure all young people in D2N2 are informed about enterprise, entrepreneurship,

career insights and employability. We will ensure that they make better-informed

careers choices and are more entrepreneurial, adaptable and resilient to labour

market change

The D2N2 SEP – Our Key Programmes

Business Skills Engagement – providing an extended employer engagement

service for SMEs, to encourage investment in skills. We will support face to face

engagement with SMEs that have not previously been engaged in the skills and

training system, to identify opportunities for traineeships, apprenticeships, student

and graduate placements and encourage employers to work with our schools,

resulting in a more skilled workforce and more competitive businesses.

Sector Skills Action Plans – we will develop sector skills action plans to shape

skills provision within each of our priority sectors and ensure employers have

access to the skilled workforce they need to drive their businesses forward.

Unleashing Growth in our Cities – we will support a range of activities to unlock

housing and employment sites in our cities (including the Nottingham Enterprise

Zone, Creative Quarter and City Centre, and Infinity Park Derby), including

transport and access improvements, place-making and tackling flood risk to

remove constraints to economic growth and de-risk investment.

Unlocking the potential of our larger towns – similarly in our larger towns, we

will unlock housing and employment sites (including Markham Vale EZ), including

transport and access improvements, place-making and tackling flood risk to

remove constraints to economic growth and de-risk investment, and improve

access to major employment sites within our larger towns, particularly

Chesterfield, Mansfield and Ashfield, including walking, cycling and bus networks.

Supporting our market towns and rural areas – we will support the vitality of

market towns as local centres for employment, shopping and services, and in

many cases key centres for tourism, including innovative and flexible public

transport solutions to meet access needs in surrounding rural areas.

Page 48: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

48

The D2N2 SEP – Our Key Programmes

Priority Growth Corridors – we will support road and rail improvements within

our priority growth corridors to reduce congestion and release growth potential.

We will continue to engage with the Highways Agency as it takes forward its

Route Based Strategies within the region, and we will work with Network Rail and

train operators on targeted improvements to the rail network and services.

Maximising the benefits of High Speed 2 – we will begin the process of

preparing for the arrival of HS2, masterplanning the potential station hub and

maintenance depot, putting in place the connectivity improvements that will

enable all parts of the D2N2 area to benefit, and supporting our businesses to

take advantage of the business opportunities it provides. We will also provide the

skills needed to deliver this vitally important national infrastructure project,

establishing an HS2 skills academy based on our rail engineering expertise.

A Key Sites Programme – working closely with the Homes and Communities

Agency, we will develop a Key Sites Programme to promote the viability and

deliverability of key sites for mixed use development across the LEP, where

development cannot be taken forward by the private sector.

Affordable Homes – working with our local authorities with housing stock , we will

draw on the enhanced Housing Revenue Account borrowing opportunities to

support the development of new affordable homes where there is clear evidence

of demand.

Building on Success

Our key programmes will build on the success of existing programmes. We

already run several exemplar programmes, such as the Nottingham

Apprenticeship Hub, and we will look to continue and extend their benefits

where appropriate, introducing new programmes of activity only where they

clearly add value to existing interventions.

Page 49: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

49

Strategic Theme: Business Support and Access to Finance

“Toyota sources parts for all of its European manufacturing plants from

across Europe. Transporting parts is a significant cost, in terms of cash,

carbon and time. A significant portion of Toyota’s European supply chain is

based in the UK but with the current growth of vehicle production in the UK

there is an opportunity to attract more suppliers into the region. To do this

the region needs good infrastructure, effective growth strategies and good

understanding between business and local government. All of these are

being further developed by the D2N2 LEP.”

Tony Walker, Managing Director, Toyota UK

“Unfortunately landlords gave up building factories with decent office

space when most manufacturing fled to the Far East and facilities like

these are not available to a young company with a lot of growth potential

but little credit history.”

Lyndon Sanders – Director and General Manager FAR Composites

“Without the grant from D2N2’s UI4G programme we wouldn’t have had

this new machine, especially this early. It has been a very worthwhile

process and allowed us to move forward and create jobs much sooner

than expected.”

Danny Fantom, Managing Director, FC Laser

Introduction

D2N2 has a large and diverse business base across a wide range of

sectors, from a high number of self-employed people and micro-

enterprises (particularly in some of the rural parts of the region), to major

Tier 1 manufacturers with global supply chains. In order to achieve our

ambition for employment growth, we need to grow and strengthen all parts

of our business base across rural and urban areas, and support increased

productivity, higher levels of enterprise, increase investment and entry into

new markets. This theme has close links to our innovation and

employment and skills themes. Improving the skills of our workforce and

future workforce will make an important contribution to business success,

and we wish to re-shape education and training provision in D2N2 to meet

business needs (see Employment and Skills section). Our innovation

priorities include the provision of innovation-focussed business support,

including skills for innovation, R&D support, grants and finance and the

development of business and practitioner networks.

Why is Business Support and Access to Finance Important?

Successful economies need a thriving business base, and SMEs play a

particularly important role in driving economic growth through innovation,

competition and job creation. Recent analysis from BIS15

reiterates the

important role SMEs play in creating competition, which in turn leads to

15

SMEs: The key enablers of business success and the economic rationale for government intervention, BIS Analysis Paper Number 2, December 2013

Page 50: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

50

higher rates of productivity and economic growth. SMEs also make a

disproportionately large contribution to job creation.

Given D2N2’s employment growth targets, and the current ‘gap’ in the

business base, encouraging higher levels of enterprise and stimulating

growth within the existing SME base will be a crucial part of our overall

Strategic Economic Plan. We have identified priority sectors which will be

a focus for our activity but providing a consistent and coherent business

support and finance offer across D2N2 is a key aim. This will ensure all

growing businesses (in any sector) can access the support they need,

enable SMEs to understand the support available and ensure they are

provided with the most appropriate provision.

Opportunities

Emerging opportunities from developments in technology and global demand,

particularly linked to advanced manufacturing, medicine and bioscience and

digital content.

Opportunity to increase the already large business base – over 66,000

enterprises across D2N2 – by stimulating entrepreneurialism amongst young

people, students, graduates and the workforce and supporting higher levels

of enterprise and business start-up

Build on supply chain opportunities linked to D2N2’s major businesses,

including targeted inward investment opportunities linked to our prime

manufacturers, priority sectors and key development sites. We will work

closely with UK Trade and Investment, through D2N2’s existing in vestment

agencies, rather than seeking to establish D2N2 as a ‘brand’ for FDI in its

own right.

Capitalise on strengths within D2N2’S priority sectors – transport equipment

manufacturing; medicine / bio-science; construction; food and drink

manufacturing; visitor economy; low carbon goods and services; transport

and logistics and creative industries.

Support high growth manufacturing sub-sectors and increase the already

high level of exporting by supporting more manufacturing businesses to enter

(a wider range of) international markets

Opportunities for R&D projects, spin-outs, knowledge transfer and HE

collaboration, particularly linked to our priority sectors

Support all businesses with growth potential, whatever their sector, size or

location

Build on the package of incentives developed through Nottingham’s City Deal

to provide enhanced support to businesses across the D2N2 area.

Challenges

Continued globalisation of both manufacturing and services leading to an

increasingly competitive trading environment

Overall low business density and low start up rates – 11,500 additional

businesses needed to close the business density gap, meaning that

encouraging entrprise across D2N2 is a key priority

Low average levels of productivity (GVA per full-time equivalent employee)

and widening gap with the England average

Limited senior manager time and in some cases expertise to develop and

implement business growth plans, and difficulties in finding, accessing and

paying for external support.

Difficulties in accessing the finance required to invest in business growth.

Some businesses are unaware of what finance options are available to them

and how to go about accessing the funds they need to grow.

Page 51: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

51

Overall Scope of Business Support Activity in D2N2

There is a range of business support projects and programmes operating

within and across the D2N2 area. These vary considerably in their scale,

(geographical and sectoral) coverage and the nature of the support they

provide, ranging from enterprise education and entrepreneurship

programmes, through business growth and business improvement

support, to international trade and inward investment activities.

Key partners involved in the business support and business growth

agenda include:

Private sector providers, including professional services

organisations such as accountancy and law firms

Finance providers including the banks, venture capital and other

corporate finance specialists, and non-traditional sources such as

Community Development Finance Institutions (CDFIs)

Business-led bodies, including the Derbyshire and

Nottinghamshire Chamber of Commerce, the Federation of Small

Businesses and the CBI

National delivery agencies, including the organisations responsible

for delivering Manufacturing Advisory Service, Growth Accelerator

and UK Trade and Investment in the D2N2 area

The local authorities, including unitary, County and district level

councils, several of whom run business support / grant

programmes

The Universities, who deliver a range of activities supporting

business growth, including sectoral growth programmes;

innovation support; higher level, technical, management and

leadership skills; international support; graduate employment

opportunities and student enterprise; and business improvement

programmes

Sector bodies including the Nottingham Creative Industries Group,

the Derby & Derbyshire Rail Forum and Medilink East Midlands,

amongst others.

Resources available to fund business support activity in D2N2 include:

Approximately £60m of Regional Growth Funding, with an existing

D2N2 RGF programme, as well as the Derby Enterprise Growth

Fund, N’Tech Fund, Global Derbyshire and a range of projects led

by individual businesses across the LEP area

BIS funding for national programmes including MAS, Growth

Accelerator and UKTI (over £12m during the period covered by

the Strategic Economic Plan)

Nearly £50m ESIF funds allocated to relevant Thematic Objectives

through the D2N2 ESIF Strategy

Despite, or perhaps as a result of, the plethora of initiatives being

delivered, businesses find it difficult to locate and access the support they

need. We are therefore proposing a number of specific initiatives as part

of the Strategic Economic Plan, to address these challenges.

Our Priority Actions

Whilst partners across the D2N2 area provide a wide variety of support to

businesses, the D2N2 LEP has identified a number of areas in which

additional intervention (or continuation of existing support) is required to

help us achieve our target of 55,000 additional private sector jobs across

the D2N2 area by 2023.

Page 52: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

52

A D2N2 Growth Hub

One of our key enabling actions will be to establish a Growth Hub, operating

across the D2N2 area. Our ambition is to simplify the business support landscape

and ensure a consistent and coherent business support offer is available across

the D2N2 area. This will enable us to provide better support to new and growing

businesses by aligning services provided by public, private and third sector

providers, whilst avoiding duplication and ensuring the most effective use of public

money. The Chamber of Commerce and Nottingham, in its capacity as a Core

City, will bring forward proposals for establishing a Growth Hub covering the whole

D2N2 area.

The Growth Hub will provide a single point of contact for both start-up and existing

businesses, providing expert and tailored advice ranging from enterprise and start-

up support, to business improvement, growth and international trade activity.

The Growth Hub will ensure that support provided locally by national providers,

including the Manufacturing Advisory Service, Growth Accelerator and UKTI, is

informed by local information and intelligence and existing exemplar support

programmes as well as being and tailored to the specific needs of D2N2

businesses. It will also provide an entry point for businesses seeking funding

advice and finance, including access to D2N2’s existing Unlocking Investment for

Growth RGF fund and other ‘local’ funds together with routes into locally based

centres of excellence such as the innovation services provided by Universities and

equity based loan finance.

The Growth Hub will provide support and advice to all businesses across the D2N2

area, whatever their size, sector or stage of development.

A Portfolio of Access to Finance Solutions

Access to finance has been a significant barrier to business growth since the onset

of the recession in 2008. Drawing on a number of sources of finance, including

RGF, European Structural and Investment Funds, emda legacy funding and other

sources, D2N2 LEP will work with partners including other Local Enterprise

Partnerships to promote and facilitate the availability of a range of business finance

solutions to ensure local businesses can access the financial support they need to

grow.

Sector Development Plans

D2N2 LEP has identified eight priority sectors which are of strategic importance to

the future of the economy – transport equipment manufacturing; life sciences; food

and drink manufacturing; construction; the visitor economy; the low carbon

economy; transport and logistics and creative industries.

Our next priority is to publish industry-led sector development plans. These will

consider the opportunities for growth offered by each of the priority sectors and the

support that is required to ensure this growth potential is achieved. Issues to be

addressed will include:

Sector-specific skills needs and priorities (see Employment and Skills

section)

Tailored business support services

Supply chain opportunities and networking

Cross-LEP linkages and opportunities for international trade

Innovation - connecting business and academic expertise to increase

levels of innovation and speed sector growth, as well as specific

innovation investment where required, such as developments linked to

the life sciences sector e.g. at BioCity and MediCity.

Our sector development plans will guide the future deployment of resources

available to support growing businesses within the priority sectors.

Page 53: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

53

Example – The Visitor Economy

Our Growth Plan for the visitor economy was published early in the New Year.

Research has been undertaken to identify our visitor economy offer and we are

now developing a set of D2N2 visitor economy investment priorities, with a

particular focus on the capital investment in visitor attractions that will be required

to maintain our offer to visitors.

We have already identified key themes for the next three years:

2014 – a Year of Cycling

2015 – a Year of Culture – The Grand Tour

2016 – World Class-World Heritage: 250 years of innovation

Business Growth Fund

The Business Growth Fund will build on the success of existing RGF-funded

activity in D2N2 which is due to conclude shortly, using proven mechanisms to

ensure successful investments and excellent value for money. The Business

Growth Fund will be a flexible fund, linked to the Growth Hub, that will offer

incentives to support SMEs and inward investors, particularly in our priority

sectors, to make capital investments to accelerate growth, create sustainable

employment and enable innovation to enhance competitiveness. We will also

sustain visitor economy marketing campaigns linked to our identified key attractor

assets to promote increased visitor spend and employment growth within the

visitor economy.

International Trade and Investment

We will work with our existing delivery partners to support the development of

stronger international trade and investment links, building on existing civic,

university and business links. We will seek the support of UKTI to build in-market

support in overseas markets, developing closer collaborative ties and ensuring that

inward investment and collaboration opportunities flow back to the D2N2 area.

Page 54: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

54

Strategic Theme: Innovation

“MediCity has the immediate advantages of being located on the Boots

site in Beeston within the Nottingham Enterprise Zone. A collaboration

between Boots, the UK’s leading pharmacy-led health and beauty retailer

and BioCity, the UK’s leading life sciences incubation company, the new

innovation hub is focused on health, beauty and wellness.

The region’s three universities of Derby, Nottingham Trent and Nottingham

will work with MediCity to commercialise research in these three key

areas, building on the legacy of world-beating drug development such as

ibuprofen and medical technology such as the MRI scanner

MediCity’s long term ambition is to be a centre of international excellence

in the health, beauty and wellness technology sectors. As such we need to

draw innovators and entrepreneurs into the region, not only from other

parts of the UK but also internationally. We need to attract investment and

we need to be able to stand out from other innovation hubs.”

David Browning, Director of MediCity

“We want to bring a research and design capability to Burnaston. This will

mean that we not only make cars but that we also play a part in developing

them.”

Toyota Deputy Managing Director, Tony Walker, on receiving RGF

funding for a new R&D Hub in Derbyshire.

Introduction

Objective: “To support a step change in innovation levels amongst D2N2

companies, and ensure businesses can find out about and access

innovation support through their preferred route”. D2N2 will increase

business competitiveness through investment in innovation,

commercialisation of credible ideas and new product development in our

priority sectors and high growth companies, exploiting its research

strengths and expertise through knowledge transfer. We will de-mystify

innovation for our local SME base and ensure that businesses in all

sectors have the opportunity to benefit from innovation in products and

processes that strengthen their competitive position.

Why Innovation is important?

“Innovation is the implementation of a new or significantly improved product (good

or service), or process, a new marketing method, or a new organisational method

in business practices, workplace organisation or external relations”. (OECD 2005,

Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data, 3rd

Edition)

In advanced economies innovation in systems, processes, products and

services is a principal source of competitive advantage. Like the definition

above, locally innovation is perceived as much more than the exploitation

of a new technology. Innovation accounts for 51% of UK private sector

Page 55: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

55

labour productivity growth16

. It helps firms create new products and

services, allows companies to differentiate themselves in market places

and improves their performance through new business processes. On

average, innovating firms demonstrate four times the sales growth of non-

innovating firms in the same sector, have better value added per employee

and more exports. The growing importance of small and micro businesses

and their contribution to the national economy (“the vital 95%”) should also

be recognised17

. They can act as a ‘seedbed’ for new innovations18

.

Innovation in firms can lead to improved product quality, an increased

range of goods and services and the opening of new markets / increasing

market share. D2N2 will support new innovations, technological advances

and industry developments as part of its strategic economic plans.

Our innovation theme is closely linked to the other elements of our

strategy. Investment in skills, in particular, will be required if we are to

maximise the innovation potential offered by our business base (including

making the most of our graduates and developing leadership and

management skills within our businesses to increase capacity for

innovation), and it is important that our business support offer and sector

focus is aligned with our innovation expertise. Ensuring that we have an

economic infrastructure that supports and capitalises on knowledge and

innovation is also crucial.

16

SMEs: The Key Enablers of Business Success and the Economic Rationale for

Government Intervention, BIS Analytical Paper Number 2, December 2013. 17

A report on growing micro businesses Lord Young, May 2013 18

Op cit (BIS Analytical Paper Number 2)

Local Innovation Strengths

Nottingham Trent University (NTU) and Freshcut Foods secured funding for a short

Knowledge Transfer Partnership (KTP) to launch a new business, RopeWeaver.

Through RopeWeaver other manufacturing SMEs can purchase the operations

management system.

The University of Nottingham Business School and Nottingham City Council are

working together to offer a support package for 100 small businesses in the city

that want to fulfil their growth potential by developing not only the business but

their owners as well.

Enterprise Inc is EMIN’s flagship scheme, supporting the start-up and growth of

graduate businesses, working through East Midlands’ University partners

D2N2 contains an excellent range of innovative companies large and

small, from highly innovative SMEs like Sygnature Discovery and

Molecular Profiles in Nottingham to large employers and multi-nationals

such as Toyota UK, Alliance Boots, EoN, Capital One, Experian and Rolls

Royce.

A project between AB Agri and Nottingham Trent University grew from the need to

try and minimise the European impact of biofuels on the environment.

University of Derby Corporate (UDC) worked with Toyota in the delivery,

development and ongoing technical support of a new online learning platform

designed to support staff training and development

These companies are supported by a number of higher education and

research strengths. The area is home to three universities – the University

of Derby, the University of Nottingham and Nottingham Trent University –

which, combined, educate around 80,000 university students including

many from international sources at any one time.

The sheer scale of activity at the Universities in terms of research and

major partnerships with industry is worth noting. There are hundreds of

researchers and PhDs working in areas critical to business innovation in

the D2N2 area. Nationally leading research groups exist within in the

Page 56: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

56

areas of Aerospace, Transport, Healthcare and Lifescience, Food and

Drink, Construction and Energy and other areas. There also continues to

be an innovative approach to multi-disciplinary working within the

Universities, reflecting the increasingly organic nature of technology

crossing sector boundaries. These groups are linked to some of the major

world players in research and development including, Rolls-Royce, BAe

Systems, Boeing, Airbus, JLR, Ford, Bombardier, AstraZeneca, Sanofi,

Novartis, Unilever, PepsiCo, Mars, E.ON, National Grid, Alstom, Vinci

Construction and many more. Through these links the Universities can

help support D2N2 inward investment and business growth initiatives.

Various research groups are also undertaking many activities with local

businesses through targeted networking activities, for example, the East

Midlands Chemistry Using Business Forum, the Precision Manufacturing

Business Network (joint with the MAA) and Nottingham Manufacturing

Network, and there are Energy and Aerospace outreach programmes.

Universities also have a role in commercialising the IP evolving from

research including undertaking licensing, joint ventures and setting up

spinout companies. Nottingham has a portfolio of 30 spinout companies,

some of who have grown into strong economic contributions, such as

Molecular Profiles and Oncimmune. Many are operating in the priority

sectors. BioCity, one of Europe’s largest bio-science incubators, is a joint

venture between the University of Nottingham and Nottingham Trent

University.

Collectively the universities have globally recognised and active world

class research-led activities and facilities based on strong relationships

with international, national and local employers such as GlaxoSmithKlein,

Ford and Rolls Royce. The Nottingham University Hospital Trust is also

one of the largest teaching hospitals in the UK. Many new (innovative)

companies have emerged within healthcare drawing on their proximity to

the NHS (clinician) and University (an example is Monica Healthcare). The

planned MediPark will enable the benefits of close relationships between

clinicians and new technology companies to be maximised.

A Nottingham based business is helping East Midlands microbrewers export their

beers to China, with the support of The University of Nottingham

The D2N2 area has a strong and diverse incubation offer as well as some

nationally important assets/clusters including Bio City Nottingham and

Rolls Royce Global Technology Cluster. It demonstrates excellence in

high-tech manufacturing, particularly transport, life sciences, and

construction. We also have business networks including specialist sector

based innovation collaborations in life sciences, transport equipment and

food and drink. A network of innovation centres is supported in Derbyshire

and Nottinghamshire which offers high value business growth space and

business support packages to tenant and virtual businesses outside the

two cities. The three iNets also drive the uptake of innovation and

facilitate the interaction of SMEs from all parts of the D2N2 area and

academia, an important role highlighted in the Witty Review. Witty also

highlights the importance of Universities providing SMEs with a single and

accessible point of entry.

A new business network is being launched which aims to give Nottingham’s

manufacturing companies a competitive advantage. The Nottingham

Manufacturing Network has been set up by Nottingham City Council and The

University of Nottingham.

Page 57: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

57

Opportunities

Building on our on-going activities within the universities and wider innovation

ecosystem, and our work with employer-led groups in the priority sectors, to

achieve a step change in innovation across all parts of D2N2, de-mystifying

the innovation process amongst our SME base and raising awareness

amongst businesses that innovation incorporates a wide range of activities

(not just R&D).

Improving innovation intelligence and capturing real-time business

requirements where the pace of technology change is often rapid.

Building on our experience of business led ‘networks with a purpose’ and

promoting more prolific cross sector working.

Exploiting R & D projects, spin out enterprises and HE collaboration in

sectors such as transport equipment and life sciences and maximising the

technology potential of HS2.

Initiatives specifically targeted to aid commercialisation of innovation in the

'Key Enabling technologies’, ‘Great Eight Technologies’, and ‘Health-Science’

technology fields.

Clustering of innovation activity and investment at Infinity Park (Derby), the

Univerity of Nottingham Innovation Park, BioCity, the Creative Quarter,

Markham Vale and Nottingham EZ (Boots, Medipark).

Building innovation in the local supply chain by enhancing links with multi-

nationals such as Toyota, Rolls-Royce and Bombardier and helping smaller

businesses bring new innovations to the marketplace.

Increasing demand for low carbon goods and services and the number of

local firms actively involved in their development including power generation,

retrofit and building construction, low carbon vehicles and fuels and energy

technologies including carbon capture and storage.

Building on successful examples of innovation and previous investments from

new facilities and equipment to training, placements, commercialisation and

innovation support. For instance Nottingham University has a single SME

portal to guide SMEs into the university and discussing what they may need.

NTU’s Future Factory was specifically developed to provide support in

sustainable design and business practice from its two internationally

recognised design schools.

Promoting innovation support through the Growth Hubs (the Government19

suggests small businesses play a crucial role in developing new ideas and

stimulating change and is making it easier for them to access innovation

funding through TSB Smart Grants and other mechanisms).

The Universities are able to draw together HEFCE (HEIF funding) Research

Council (Translational Funds for Research) and TSB funds (research

exploitation funding) to stimulate Knowledge Exchange in its various forms

with businesses. The LEP could play a key role in leveraging these funds

locally.

Investing in further infrastructure that allows companies and universities to

work together to ensure a rapid exchange of knowledge and

commercialisation of opportunities.

Higher education skills and graduate employment/retention is a key driver for

D2N2 as well as developing entrepreneurship amongst overseas students

and stronger inward investment links to their native countries. Placements for

international students can assist businesses with their internationalisation

ambitions.

19

Small Business, GREAT Ambition, December 2013, HM Government.

Page 58: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

58

Challenges

Counteracting the perceived complexity of innovation funding mechanisms

amongst some local companies and a feeling that innovation support is too

narrowly focused solely on scientific R&D.

A step change is required in graduate placements, mentors and promotion of

placements in smaller local companies, bringing graduate talent to SME

innovation. Undergraduate placements can also have a role to play in

promoting innovation.

Increasing the absorptive capacity for innovation within local firms who tend

to have a lower than average number of highly qualified workers20

.

Accessing innovation active SMEs or SMEs with potential given their low risk

appetite.

Up-skilling businesses in order to be able implement new innovation

measures. For example to implement a new innovation or to supply, service

and maintain new technologies. In some case individuals need retraining to

work with new technology.

Promoting innovation within our learning infrastructure - capturing the interest

of young people early on at school and subsequently within FE and HE

institutions.

Simply communicating the scale of on-going activity and range of technical

expertise. The challenge is partly visibility but also navigation i.e. channelling

companies to the right people and working with them to understand how their

company might benefit.

Linked to the above the sheer range and diversity of innovation activity can

seem daunting – SMEs could benefit from an overview of relevant innovation

20

D2N2 is in the mid-range of LEPs in terms of patents per 100,000 residents (9.2

per 100,000) and the level of employment in the knowledge economy (17.8%, 23rd out of 39 LEP areas.

opportunities and the provision of an appropriate organisational structure.

Overall Scope of Innovation Activity in D2N2

There is a range of innovation projects and programmes operating within

and across the D2N2 area. Innovation performance depends not only on

how specific actors (for example companies, research institutes,

universities) perform, but on how well they interact with one another in an

innovation system. Local stakeholders will need to work together to

enhance the capacity and capability of our local innovation ecosystem.

Key partners involved in the innovation agenda include:

The private sector from multi-national enterprises and large

companies to micros and small firms across a broad range of

sectors.

Research and learning organisations - HE and FE institutions

including research centres and institutes, private training providers

and schools.

Business-led bodies including sector networks.

National agencies, including the organisations responsible for

delivering Manufacturing Advisory Service, Growth Accelerator

and UKTI and bodies such as the Technology Strategy Board.

The local authorities, including unitary, County and district level

councils, several of whom run or fund innovation programmes.

The Witty Review claims there is significant scope “to better align funding

streams, organisational focus and increase cross institution collaboration

to avoid delays in ideas reaching maturity and the risk of British inventions

Page 59: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

59

building foreign industries”. Locally we are determined to maximise

resources available to fund innovation activity.

Derby City Council secured £40 million from the Regional Growh

Fund (RGF) to grow enterprise and create jobs in Derby and its

travel to work area. £20 million has been made available directly

to businesses to support: innovation, expansion and investment.

Nottingham City Council secured £10 million from RGF to help

fund the Nottingham Technology Grant Fund that is drawing in an

additional £40 million of investment to help SMEs in the Life

Sciences, low carbon / cleantech and digital content sectors

commercialise their new products and services.

Universities are able to draw on wide range of resources from

HEIF (Higher Education Innovation Fund) and other knowledge

exchange funding sources. These sources include significant

research funding from public and private sources, leading to new

IP, facilities and expertise. In 2011/2012 the three universities

spent over £92m21

on interactions between business and the

wider community (£2.4m of this was for SMEs only).

BIS funding for national programmes where they can be used to

achieve innovation objectives.

£42.8m including some £21.4m ERDF allocated to innovation

through the D2N2 ESIF Strategy and a further £42.8m for low

carbon (again including some £21.4m ERDF).

21 Collaborative Research Income (30%), Contract Research (25%), Courses for

Business and Community (18%), Consultancy Contracts (10%), Facilities and Equipment Services (5%), Regeneration and Development income (excludes capital funding) (4%), IP income (e.g. from licences) (0.2%); Sale of spin-off shares (0.1%).

Other EU funds such as Horizon 2020 which will support and

accelerate research and innovation as part of the drive to create

new jobs and growth in Europe.

Local authority funding.

Our Priority Actions

Whilst partners across the area will provide a wide variety of support to

businesses, the LEP and its partners has identified six areas in which

additional intervention (or a continuation of existing support) is required to

help us increase levels of innovation.

1. Infrastructure for innovation: capital investment in a network of advanced

innovation facilities and equipment to foster innovation, with a focus on our priority

sectors. For instance BioCity has seen substantial investment, Infinity Park Derby

includes proposals for an Innovation Hub and there will be major investment the

Nottingham Enterprise Zone and the University of Nottingham Innovation Park.

The University estates have also had considerable infrastructural investment in

buildings, facilities and equipment.

2. Skills for innovation: offering new skills to implement a new innovation or to

supply, service and maintain new technologies as well as management and

leadership development particularly for SMEs. (Lord Young’s work on ‘Growing

Micro Business’ (May 2013) highlights the role of Business schools here).

3. Research and Development for innovation: this includes helping businesses

fund the development of ideas and connecting businesses with expertise and

equipment.

4. Graduate talent for innovation: getting graduates into existing businesses and

starting their own enterprises. BIS notes recently22

that “graduates drive

productivity improvements through both their direct labour contribution and by

enhancing the productivity of others”.

22

Op cit (BIS Analytical Paper Number 2)

Page 60: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

60

5. Grants and finance for innovation: to help business exploit their ideas and

find a route to market (in international and export markets for instance) through an

appropriate suite of funding support. Alongside infrastructure this is a key enabler

for innovation.

6. Networks for innovation: encouraging like-minded self-directed communities

of practice to collaborate on innovation activities. These networks (generalist and

sector specific) will also provide a direct route into the wider support available.

The above will be informed by intelligence from an innovation observatory.

A current D2N2 innovation survey is analysing the nature of innovation

locally and identifying opportunities and challenges that businesses have

in supporting innovation in their workplaces. This is the first phase of an

ongoing programme of understanding innovation within our priority

sectors, evaluating what works' in D2N2 and identifying emerging clusters

and technological opportunities. Part of this work will seek to understand

how effective we are at drawing down funding for investment in innovation,

such as through the TSB and the EU.

Page 61: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

61

Strategic Theme: Employment and Skills

As a company focused on developing new technologies for reducing the

weight and emissions of all kinds of vehicles we need to be recruiting and

developing the most advanced composite thinkers in the world. This

means we need to recruit some highly skilled thought leaders and a cadre

of young engineers with an ability to learn and an ambition to work in

engineering. Finding and developing these kinds of individuals is the basis

of our future and that of high value UK manufacturing.”

Lyndon Sanders, Director and General Manager FAR Composites

“One of the largest challenges the company faces is recruiting skilled staff

to work in most departments. Unfortunately due to the massive turn down

in business right across the world we have lost a considerable amount of

the key skills required in manufacturing.”

Richard Munyard, Managing Director of S&S Plastics

“I welcome the launch of D2N2’s skills plan. There is a clear commitment

to driving up apprenticeship opportunities and to working with employers,

colleges and training providers to prioritise the skills needs of business

now and for the future. The next stage must be to turn the plan into action,

and for the benefits to be felt by employers and learners on the ground.”

Matthew Hancock MP, the Minister of State for Skills and Enterprise,

welcomed D2N2’s Skills for Growth Strategy.

Introduction

Employment and skills are a cornerstone of our Strategic Economic Plan.

D2N2 LEP is committed to increasing the number of jobs within the

economy and ensuring that our businesses can access the skilled workers

they need, both now and in the future. We will strongly support

interventions to increase employment and skills at all levels and across the

D2N2 area, recognising the need both for higher level skills but also for

entry-level and employability skills to ensure people are able to access

employment opportunities and progress within the labour market, including

capital investment to ensure our FE facilities provide an environment in

which the skills needed to drive economic growth can be obtained. We will

agree a Skills Deal with Government, aligning resources to address our

shared employment and skills priorities of increasing competitiveness and

driving up workforce skills in the D2N2 area.

Why are Employment and Skills Important?

The most productive local economies in the UK have large numbers of

highly skilled workers, and it is clear that skill levels have a positive impact

on the competitiveness of businesses and places. In D2N2 we need to

raise the skill levels amongst our young people and within our workforce,

as well as ensuring that people in all our communities can participate in

and benefit from the economic and employment growth that we aim to

achieve.

Whilst skill levels have been improving (for example the proportion of the

working age population holding qualifications at level 4+ has risen from

29% to 38% since 1999), further improvements are required if D2N2 is to

Page 62: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

62

close the gap with the national average and strengthen its offer as the

most competitive location for business in the UK. Investment is required in

a range of activities that will increase skill levels within the workforce and

ensure employers can access skilled workers to drive innovation and

business growth.

D2N2’s Skills for Growth Strategy sets out our shared understanding of

local skills and business needs. The Strategy identifies six priorities for

action which will help to improve the competitiveness of businesses and

tackle poverty and worklessness and which will sit at the heart of our Skills

Deal, supported by employers and partners.

These priorities are closely aligned with the ambitions in our Strategy for

Growth, and will be delivered drawing on resources from national partners

(including DWP and the SFA), Local Growth Fund and the ESIF, including

£85m of ESF funding which will support interventions to reduce

worklessness, response to redundancy, careers service, in work skills (not

including apprenticeships) and English & maths.

Opportunities

Develop greater employer ownership and leadership of the skills and training

system, ensuring that employer skills needs are better articulated and that the

system is demand-led.

Support faster growth within our priority sectors by identifying and meeting

sector-specific skills needs.

Better co-ordination, shared analysis and use of existing labour market and

intelligence held by a range of private and public sector partners (including

the Sector Skills Councils, ESBs and major employers) to shape skills and

employment provision across D2N2.

Improve business competitiveness, levels of innovation and productivity

through the provision of business management and leadership skills,

stimulating business growth.

Better harness the potential of apprenticeships and traineeships to deliver the

quality training that businesses need, and provide our young people with

routes to high quality careers with secure employment prospects, by

increasing the number of apprenticeship starts by 20% within D2N2.

Better positioning and shared understanding of the opportunities provided by

higher apprenticeships as a work-based route that leads to a degree

qualification.

Promote and transfer locally-developed best practice in tackling barriers to

work, including the practise developed through the Nottingham City Deal,

across the D2N2 geography.

Harness investment in FE capital, working with the Skills Funding Agency, to

support place-based interventions to meet skills needs, including an

integrated Skills Hub at Nottingham Broadmarsh and supporting a University

presence in Chesterfield and Mansfield.

Locate the HS2 Skills Academy in the D2N2 area to take advantage of the

Page 63: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

63

specialist facilities and extensive relationships with employers that already

exist. All stakeholders are committed to working collaboratively to provide a

centralised locality, without any need for LGF funding.

Promote enterprise across the workforce, including in schools, colleges and

universities in order to increase business start up rates, including enterprise

summer schools / boot camps and the active engagement of entrepreneurs in

residence as ambassadors for this area of activity..

Build on the work being undertaken across D2N2 to raise levels of youth

employment and ensure that young people are better informed about labour

market change and the implications for skills and employability including

through improving the quality and consistency in availability of careers

advice.

Work with the Universities (including the Careers and Employability teams),

business community and other partners to Increase student and graduate

recruitment and retention within D2N2 through internships and placements

(including summer placements), and a graduate recruitment programme, and

harness the value of the universities’ international students fort eh benefit of

D2N2’s businesses.

Stronger FE / HE partnerships to meet employer demand for STEM skills

across a number of sectors and to encourage female talent into STEM

careers.

Challenges

High levels of worklessness, unemployment, under-employment (part-time

working) and youth unemployment, concentrated in particular locations within

D2N2.

Concerns about the work readiness of young people, and employer

willingness to recruit new entrants to the labour market. This is a particular

challenge in the light of the ageing workforce and high levels of replacement

demand for labour likely to be required in the coming years, and increases

the importance of providing consistent, relevant, locally-focussed careers

advice.

Decline in entry to part-time higher education courses, with implications for

social mobility and workforce skills.

Complexity or provision and access routes for those furthest from the labour

market.

Smaller companies are less likely to see the value of investment in training

and unwilling to commit resources (money and time) to training that does not

meet their specific needs.

Ensuring the supply-side of the skills system can recognise employer needs

and respond to their demand in an effective and co-ordinated way, which

employers can navigate easily.

Graduate retention within the region / skills and business start-up flight.

Overall Scope of Employment and Skills Activity in D2N2

For individuals, there is a close connection between skills and

qualifications, the likelihood of being in employment and levels of earnings.

For employers, a more skilled workforce results in higher levels of

productivity and increased adaptability in response to market changes. A

range of interventions is being delivered across the D2N2 area to raise

levels of employment and increase skills within the workforce, and we will

develop a D2N2 Escalator to Employment to ensure a joined up pathway

of support to bring people into the labour market. This will build upon the

good practice already in place and link traineeships, apprenticeships and

other interventions in a cohesive and supportive package. Key partners

involved in the employment and skills agenda include:

Page 64: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

64

The private sector, with employers increasingly involved in

identifying and articulating skills needs and helping the supply-side

to respond and nearly two-thirds of businesses in D2N2 investing

in training in the past year.

The local authorities, including unitary and County councils with

responsibilities for education (pre- and post-16), as well as the

district level authorities with a focus on employment amongst their

communities

The learning organisations, including schools, FE Colleges,

private training providers and HE institutions

Business-led bodies including the Chamber, FSB, CBI and sector

networks

National agencies, including DWP, the Skills Funding Agency and

the National Apprenticeship Service.

Our approach to skills and employment will ensure that we avoid

duplication; meet the needs of employers; deliver more joined up working;

match skills to employment destinations; remove barriers to employment

and deliver a step change in performance across D2N2.

We are committed to acting at the most appropriate geographical scale to

raise levels of employment and skills within D2N2 and will support the

activities of the ESBs and other local partnerships. The role of the LEP

will be to maximise the resources available for employment and skills

interventions, including DWP and SFA budgets, and discretionary

resources such as ESF.

Our Priority Actions

Our aim is to ensure that supply meets demand, that businesses in the

D2N2 area have the skills they need available to them locally and that our

residents are equipped to access the opportunities we create.

Strategies to reduce unemployment and increase skills levels already exist

and are being delivered at a local level in both the N2 and D2 areas,

driven by local Employment and Skills Boards. Through a robust

partnership approach we aim to build upon this to share and roll out good

practice across the D2N2 LEP area, create a step-change for demand-led

provision, work collaboratively to best utilise funding to maximise impact

and influence skills and employment provision to be outcome and

destination focussed.

With this in mind the key areas of focus for D2N2 will be;

Meeting the Needs of Key Sectors

We are developing Sector Skills Action Plans to shape skills provision within each

of our priority sectors and ensure employers have access to the skilled workforce

they need to grow and prosper.

D2N2 has established employer-led Consultative Task Groups in each of our eight

priority sectors to help shape and develop a sector specific Skills Action Plan. The

Task Group stakeholders include employers of all sizes, Sector Skills Councils,

membership bodies and providers with a particular knowledge of each sector. The

Action Plans will set out labour market information for each sector, inform skills and

funding gaps, map existing provision across the D2N2 area, identify the barriers

faced by employers within the sector to meeting their skills needs and contain

solutions for a new skills landscape for their sector. Working with the local

provider base we will then use these plans to commission a programme of sector

focused demand led training for both the existing workforce and new employees.

Page 65: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

65

Increase Employability and Enterprise Skills

Our aim is to ensure all young people in D2N2 are informed about enterprise,

entrepreneurship, career insights and employability, so that they make better-

informed careers choices with an understanding of current and future economic

growth in D2N2, and are more aspirational, adaptable and resilient to labour

market change.

Whilst existing frameworks and programmes are available, they are not meeting

employers’ needs for work ready young people, and have little involvement or buy-

in from schools. We propose to create a D2N2 Employability Framework for

schools covering employability and enterprise. To ensure the D2N2 framework is

different, it will be co-designed by groups of young people and employers,

supported by stakeholders including schools, parents and service providers which

will influence buy in so schools see it as part of the their core offer to young

people, and it is delivered as part of the mainstream curriculum.

Within the overall D2N2 Framework, developing a local Charter will ensure that

local challenges are addressed, while a common framework is adopted across the

D2N2 geography.

Alongside the Framework we will look to develop an integrated package of support

to schools (which includes work experience), and link each school to a relevant

local employer, sourced either through D2N2 or through local initiatives. We will

develop a D2N2 Escalator to Employment to ensure a joined up pathway of

support to bring people into the labour market

To ensure further buy in, through freedoms and flexibilities we are proposing that

we become a pilot area for the inspection of employability skills provision within the

Ofsted framework for schools.

Reducing Unemployment

While there is a range of provision to support those who are not in work move

towards employment, it is disconnected, often working in competition rather than

collaboration, there is duplication, it is driven by national policy rather than local

need, it sits in isolation from other related policies or interventions delivered at a

local level and in some cases is proving to be unsuccessful in addressing the

needs of those who have the most significant barriers towards work.

We are seeking to create a seamless pathway from unemployment that removes

barriers to progression and connects to real job opportunities that are created.

Managed and delivered at a local level, this programme will seek to build upon

provision already in place

Through the recent Youth Contract under-spend programme Nottingham City and

areas of Derbyshire through the Sheffield City Deal have implemented an intensive

model of intervention. It is our aim to build on existing good practice across the

D2N2 area by increasing the local accountability of national programmes and

commissioning activity which adds value. Where job seekers experience

additional barriers such as the cost of transport, we will seek to remove these

barriers through the development of specific programmes to address this need.

Increasing Employer Uptake

The research undertaken for our Skills for Growth Strategy demonstrates that there

is still a need to make the case to businesses (particularly smaller businesses) for

the value of investment in skills; however the marketplace of support is already

overcrowded and confusing for the employer. To tackle this problem, we propose

to provide an engagement strategy which will drive a step change in employment

and skills provision across the D2N2 area. This will result in:

- localised employer and sector demand-led employment and skills

provision

- partnership and collaborative working drawing on good and best

practice

Page 66: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

66

- joined up and best use of funding to maximise impact

- engagement through a sector specific knowledge-base

The strategy will set out to reach at least 25%-30% of employers, predominantly

microbusinesses and SMEs, who are not currently engaged with the skills and

employment strategy within the D2N2 area. The strategy will promote an overall

D2N2 offer to include career pathways through traineeships and apprenticeships,

work placements and work experience, link employers with schools and providers

in support of the D2N2 Employability Framework and encourage graduate

recruitment and retention – at a sector level. To ensure deliverability, sustainability

and collaboration we would look to enhance existing models to provide a proactive,

face to face approach to include:

- Apprenticeships, traineeships and work-experience, including

incentive for employers to encourage uptake of specific programmes

- Graduate placements and recruitment

- Accessible HR, Finance and Payroll solutions for SMEs

- Collaborative procurement service for SMEs

- Sector specific funded training

- Employment with training

- Access to funding to support Emerging Needs

- Inclusive delivery models to enable the supply chain and SMEs to be

able to access training opportunities

- Engage with local schools, academies and providers in support of the

D2N2 Employability Framework and Charter

- Supporting careers through the D2N2 Escalator

- Service to engage non-engaged businesses

- Sign-posting to existing services (such as NAS, NCS, JCP,

providers)

- A vehicle to assist with the communication and deliverability of

Government changes to directly fund employers in relation to

apprenticeships

Higher Level Skills Development (Level 4+)

D2N2 has identified that access to a highly skilled workforce is critical to its future

growth, capacity for innovation and economic resilience.

This will include both the supply of new talent but, in the context of an ageing

workforce, it will also include supporting the current workforce to upskill or re-train.

Ability to adapt to a changing workplace, to adopt new technologies and processes

and to use more innovative and integrated approaches to solve existing and

emergent business issues will be critically important skills in a knowledge

economy.

D2N2 will work with its Sector Groups and the HE sector to ensure that appropriate

skills based interventions are designed to underpin the ambitions of the LEP’s

Growth Strategy and Action Plans around innovation, low carbon and business

growth. This will cover the following priority areas:

The supply of work-ready graduates (graduate talent)

The supply of good quality graduate jobs in the D2N2 SME base to retain

graduate talent

Provision of appropriate advanced CPD / skills updating / retraining

opportunities for the current workforce (L4+). In particular, higher-level

technical skills to build capacity to adopt new technologies. Also, higher

level personal and professional skills to build capacity for new ways of

thinking and working. Including in sectors where there are skills

shortages, staff retention concerns and large scale changes in business

practices – “big business challenges”.

Provision of skills development opportunities that encourage companies

to collaborate, working and learning together to achieve greater regional

impact (including supply chain approaches to higher level skills

Page 67: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

67

development).

Executive management and leadership development including for high-

growth SMEs

New business gestation for student and graduate entrepreneurs

Development of new employer-led Higher Apprenticeship pathways

where an industry standard is identified

Knowledge Economy Skills – collaborative industry/HE Masters and PhD

places to stimulate a research and innovation culture in SMEs

Supply of higher-level STEM skills (including female talent)

Skills Capital Programme

Working with our partners, we have developed a skills capital programme to

improve the quality of our educational infrastructure, inspiring greater employer

and individual investment in learning. We have identified our initial priority projects

and our indicative requirement for support from the Local Growth Fund. Final

support will be subject to the availability of LGF and detailed due diligence on each

project.

The Nottingham Skills Hub project (integrated FE campus) is a key skills priority for

D2N2 LEP. The Skills Hub will promote and develop entrepreneurial behaviours,

respond directly to the needs of local employers and supply the skills required for

our key employment and growth sectors. There is a rapid process of development

work taking place to finalise the cost schedule for what will be a transformative,

multi-year development and we are keen to ensure that work can begin in 2015/16

Our other priorities for 2015/16 include support for the development of a University

Centre at Mansfield (Vision West Nottinghamshire College), and the Chesterfield

Centre for Higher Level Skills (Chesterfield College in partnership with Derby

University Group), giving greater access to Higher Education and high level skills

provision to residents in those parts of D2N2 where skills levels are below average.

We will also support improvements to the Derby College estate, at the Hudson

Building in Pride Park (providing training focussed on construction, one of our

priority sectors) and Broomfield Hall in Morley (supporting a range of sectors

include agriculture, horticulture and sports science). We will support improved IAG

for our young people through the provision of a mobile IAG facility for Burton and

South Derbyshire College.

The HS2 Skills Academy and the New Campus for Basford Hall College,

Nottingham are also key priority actions for D2N2 LEP, and are currently being

progressed without a requirement for resources from the Local Growth Fund.

Page 68: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

68

Strategic Theme: Infrastructure for Economic Growth

“As the first business to open within the Nottingham Enterprise Zone,

MediCity will help to achieve our vision of creating a centre for innovation

and product development within the health, beauty and wellness sphere.”

Mark Chivers, Enterprise Zone Director, Boots UK

“Growing Places Fund funding was absolutely essential. We had explored

and exhausted all other funding routes. The effect of the D2N2 support is

that if growth vastly exceeds the capacity funded by the D2N2 loan, further

finance from conventional sources should be relatively easy to come by.”

David Aslin, Technical Director, Prometheus

Introduction

Our vision is for economic infrastructure that will:

Unlock creation of new jobs through delivery of employment

growth areas, with interventions to improve transport accessibility

and connectivity, tackle flood risk and ensure utility provision to

maximise the attractiveness of each site, particularly to growing

businesses in our priority sectors.

Accelerate completion of new housing to support growth by

ensuring that there is a good supply of labour in close proximity,

who can travel in economically and environmentally sustainable

ways, and mitigate the effects of additional travel in our faster-

growing areas.

Provide efficient and resilient transport networks to support

business competitiveness, unlock city growth, address people’s

accessibility needs and enhance the quality of our places.

Enhance the high quality of life in the area to sustain D2N2 as a

great place to live, work and invest.

The most important element of our economic infrastructure is the transport

network, which enables people to access jobs and training; businesses to

connect with customers and supply chains; and our cities to become

powerhouses through increased agglomeration.

Improving our existing transport network, and fully capitalising on

transformational projects such as HS2, will unlock new jobs, improve

business competitiveness by reducing costs and journey times, accelerate

delivery of new housing for our growing population, enhance the quality of

our places and develop inclusive communities where people can make

informed travel choices.

Why is infrastructure important?

Our evidence shows that we have diverse challenges across D2N2 that

are constraining our ability to unlock our growth potential. Pages 13 and

14 show that we will need to do things differently if we are to deliver our

plans for a transformational change in the number of private sector

employees working in the D2N2 economy.

Likewise, page 15 shows that we have the ambition to accelerate housing

completions, to provide the right types of housing in the right places to

help in developing labour markets to support our future economy.

In summary, the proposed investment in this SEP will deliver a step-

change in unlocking growth.

Page 69: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

69

Our target is to increase the potential growth in the number of private

sector employee jobs from 30,000 (if current trends were to continue) to

55,000 in the ten year period to 2023, and accelerate the delivery 77,000

new homes. This investment will play a critical role in tackling barriers to

the effective operation of our economy and enable the rapid delivery of

suitable employment and housing sites that meet local planning objectives.

Our evidence indicates that, without a step-change in infrastructure

investment across the D2N2 area, we will face serious constraints in

unlocking these ambitions. In several areas SEP investment will be able

to provide enabling infrastructure that will make development commercially

viable.. Through targeted investment in infrastructure to unlock new

employment and housing sites, we can deliver new jobs and homes with a

very high level of private sector leverage.

The investment in the SEP will tackle resilience in our transport networks

by maintaining our strategically critical routes, tackling the impacts of more

severe weather and addressing flood risks. In Derby, the River Derwent is

both a major strategic asset and risk that will pose increasing problems to

resilience of our networks and could sterilise strategic development sites in

the city centre. Smaller-scale, but significant flooding challenges are faced

in Nottingham and Chesterfield.

Opportunities and Challenges

As we have already shown in previous chapters, the D2N2 economy is

highly diverse. Whilst we face a number of common D2N2-wide

opportunities and challenges, there are distinct issues in different areas

which the SEP investment will tackle in order to develop a more socially

cohesive and economically successful and balanced LEP area. On the

basis of the evidence on the economic footprints of housing markets and

travel to work areas, in addition to D2N2 wide challenges and

opportunities, we have identified six geographical areas that form the basis

of our infrastructure strategy:

Derby: Derby City, Amber Valley, Erewash & South Derbyshire;

North Eastern Derbyshire: Bolsover, Chesterfield & North East

Derbyshire;

Peak: Derbyshire Dales and High Peak;

Gtr Nottingham: Nottingham, Broxtowe, Gedling & Rushcliffe;

Mid Notts: Ashfield, Mansfield and Newark & Sherwood; and

North Nottinghamshire: Bassetlaw.

There are also strong functional relationships with adjacent towns and

cities, as shown below.

Page 70: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

70

Each of the six spatial areas has distinct opportunities and challenges:

NE

Derb

ys

Significant urban area with strong

economic linkages with the Sheffield

City Region.

Markham Vale EZ with simplified

planning and innovative funding.

Mixed-use regeneration of

Chesterfield Waterside.

Strong linkages with the Peak area

and attractive rural areas.

There is a need to improve the

performance of Chesterfield town

centre as a key sub-regional centre for

the local economy.

Need for remediation of legacy

industrial sites and unlock significant

employment and housing growth in

brownfield areas.

Pe

ak

World class natural environment

and offer for visitor economy.

Strong linkages with surrounding

cities, offering high quality housing

and recreation opportunities.

Key towns as local centres and foci

for local growth, including

Ashbourne, Matlock, Bakewell,

Buxton, New Mills and Glossop.

Strong business sector in

manufacturing, food and drink.

Poor Transpennine connectivity, both

road and rail, and focused challenges

on routes into Greater Manchester.

Need to improve quality of place to

transform the potential of Buxton as

one of England’s leading Spa towns for

visitors, building from a strong base.

Ability to unlock growth in key towns.

Broadband coldspots in rural areas

which hampers growth of SMEs, both in

terms of coverage and slow speeds.

Opportunities Challenges

Derb

y a

rea

Key City with large growth potential

with key focus on advanced

transport manufacturing and strong

demand for new floor space & sites.

Opportunity to improve city centre

experience and connections with

Derwent Valley World Heritage Site.

Fast-growing population with large-

scale housing growth in Derby and

South Derbyshire.

Several parts of the city centre give a

poor visitor experience. Major flood risk

is also impacting on resilience and

constraining growth.

Significant infrastructure investment is

required to unlock key sites in Derby

including Infinity Park and housing sites

across the wider Derby area.

Infrastructure is required to unlock

regeneration of key sites in Amber

Valley, Erewash and South Derbyshire.

Page 71: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

71

Gtr

No

ttm

Core City with large growth potential

in key sectors including Creative,

Biosciences and Professional

Services, with strong demand for

quality floor space.

High-performing city centre with

planned retail expansion. Planned

wider transformational change in

city centre and southern corridor.

Fast-growing population with large-

scale housing development in

surrounding districts.

Current investment programme

(A453 widening, NET Phase 2,

Station) will transform connectivity

and make the area economically

attractive to investors.

Long journey times to London and other

Core Cities, impacting on

competitiveness of city.

Serious problems of traffic congestion,

impacting on ability to unlock growth,

and connectivity within conurbation.

Infrastructure constraints to unlocking

priority development areas in city centre

and housing development across

conurbation.

Extensive deprivation across many

parts of the urban area, in close

proximity to opportunities.

Mid

No

tts

Mansfield / Ashfield is a major urban

area with untapped latent potential.

Newark is an attractive market town

with strong housing demand and

connections with Lincoln and

London.

Attractive rural areas, with

opportunity to further develop the

visitor economy.

Serious challenges of economic

underperformance, poor quality of place

and deprivation in Mansfield / Ashfield.

Ability to unlock planned housing and

employment growth in Newark,

Mansfield and Ashfield.

Pinchpoints on road network, limited rail

services to Nottingham and no services

in the middle of the area.

No

rth

No

tts North-south connectivity via A1,

ECML. Worksop as a key economic

centre and Retford as an attractive

market town. Attractive rural areas

and strong linkages with Sheffield

City Region.

Need for regeneration of coalfield sites

(e.g. Harworth/Bircotes) and

infrastructure to unlock improved

employment opportunities in Worksop.

Broadband coldspots in rural areas.

In addition to the specific issues in our six areas, we have shared opportunities and challenges.

Opportunities Challenges

D2N

2-w

ide

HS2 will transform our national and

international connectivity, increasing

D2N2’s attractiveness as a business

location. We are strongly

committed to providing local

transport links to the proposed HS2

station to ensure that D2N2 fully

benefits from this transformational

national project

Collaboration with adjacent areas to

deliver shared infrastructure

priorities, including Sheffield City

Region, LLEP, Greater Lincolnshire,

Stoke & Staffordshire and Greater

Manchester.

Sustainable travel programmes are

delivering a step-change in attitudes

to active travel and public transport

and are reducing car dependence

for journeys to work and local

centres.

Ambition to transform cycling across

the D2N2 area with transformational

projects in Derby and Nottingham.

Ensuring good inter-urban connectivity

to meet the needs of businesses and

commuters in D2N2 and adjacent

areas, including improved opportunities

for journeys by rail and targeted

improvements to key highway corridors.

Extensive congestion on strategic and

local road networks, which impacts on

business connectivity, labour markets

and is constraining our growth potential.

Maintenance and adaptation of the

highway network to ensure resilience in

response to extreme weather and

continued levels of service to meet the

needs of the D2N2 economy. This is

particularly important in our rural areas

where economies are vulnerable to

closure of key routes.

Broadband connectivity across large

areas of both Derbyshire and

Nottinghamshire: cold spots in rural

areas and the need to provide ultrafast

broadband to meet business needs in

Derby and Nottingham.

Page 72: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

72

Our specific rail challenges are shown on Page 37. Line speeds on the

Midland Main Line result in longer journey times from Nottingham and

Derby, constraining the competitiveness of our cities. Likewise, there are

challenges with journey times from Nottingham to Birmingham and Leeds,

due largely to infrastructure constraints at key locations within the D2N2

area. We also face challenges with more local services between Lincoln

and Nottingham, Matlock and Derby and High Peak towns into Greater

Manchester.

Congestion hotspots on the road network are also shown on Page 36.

This shows that there is widespread congestion on key strategic routes,

across large parts of both Derby and the Greater Nottingham conurbation

and in our key towns, including the Chesterfield, Mansfield and Newark

areas. There are also key pinchpoints at numerous locations on the

network, which could be addressed by modest investments.

We have a clear focus on key locations for both unlocking employment

growth and accelerating housing delivery. Our evidence demonstrates the

importance of unlocking growth – both housing and employment – in the

Greater Nottingham and Derby areas, together with Chesterfield,

Mansfield/Ashfield and Newark. Within the Peak area, a focused

programme is proposed to transform Buxton’s role as one of England’s

premier spa towns, whilst smaller-scale, locally-appropriate growth is

proposed in the Derbyshire Dales towns. There are clear challenges in

unlocking growth where congestion is currently prevalent, particularly

Greater Nottingham, Derby, Chesterfield and Newark.

Infrastructure Strategy

Our infrastructure strategy and implementation plan will tackle these

objectives and will play a central role in improving our business

competitiveness, increasing new job creation, particularly in our priority

sectors, and accelerating housing completions.

We have identified strategic projects to support the whole D2N2 area and

a series of prioritised packages to deliver transformational change in our

six spatial areas.

These will build on our existing committed LTB priorities, which are:

A52 Wyvern Pride Park Congestion Management, Derby;

Southern Growth Corridor, Nottingham;

Gedling Access Road, Gedling, Nottinghamshire;

A61 Whittington Moor Roundabout, Chesterfield, Derbyshire;

A57 / A60 Junction, Worksop, Nottinghamshire; and

Seymour Link, Markham Vale, Derbyshire.

Our place-based packages comprise projects that will deliver modal shift

to create headroom for growth, targeted pinch point schemes on the road

network, multi-modal corridor improvements, new access infrastructure

and other targeted infrastructure measures to unlock our key sites.

We will work with other LEPs to deliver strategic shared priorities,

including the development of East Midlands Gateway, in North West

Leicestershire, with LLEP (see Page 36). We will also work with Network

Rail, Sheffield City Region and LLEP to deliver line speed improvements

at Market Harborough before the impending electrification of the Midland

Main Line.

D2N2 benefits strongly from being at the heart of the UK’s strategic road

network, but it also means that problems on the network in our area have

a nationwide impact on the UK economy. We will work closely with the

Highways Agency (HA) as it takes forward its Route Based Strategies,

focusing on the London to Leeds East (A1), London to Scotland East (M1)

Page 73: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

73

and North and East Midlands routes. We will work closely with DfT and

HA in the Transpennine study, which covers the highly congested A628

corridor through our north-west corner and other routes through the Peak

area. Our key priorities include:

Ensuring the long-term effectiveness and resilience of the M1 as

the primary movement corridor through the area;

Developing effective long term solutions for the A38 through Derby

in the form of grade separated junctions, including balancing the

needs of longer-distance and more local traffic within the city;

Developing a long-term strategy for the A52, in connecting Derby

and Nottingham, in providing access to the proposed HS2 station

and in enabling effective orbital movements around Greater

Nottingham;

Planning of effective solutions to tackle specific hotspots on the

network, including the A38 approach to M1 Junction 28 and the

A46 junctions at Newark.

We will commence planning for the arrival of HS2, including

masterplanning of the proposed new hub station, and will work with

partners (including LLEP and the rail industry) to develop our regional

connectivity package. One element of this will be to explore the role of

both heavy rail and mass transit options to optimise connectivity to the

new station to maximise economic benefits to the D2N2 area.

We will be seeking to work with government in undertaking more detailed

feasibility work to support the development of our longer-term priorities,

including development of our HS2, heavy rail and mass transit strategy.

We will also seek support for work to assess issues associated with orbital

connectivity around the eastern side of Nottingham, including the future

role of the A52 Nottingham Ring Road through Rushcliffe and the scope

for a fourth Trent Crossing to improve cross-river movements and

resilience in the eastern side of the conurbation.

Our Priority Actions

Drawing on the evidence presented earlier, we have identified a series of

strategic infrastructure packages that will unlock our growth potential and

deliver transformational benefits.

Strategic Package: Growing Greater Nottingham

Focused on the city centre as a key engine of economic growth, the city’s strategic

east-west corridor and key employment and housing sites across the conurbation.

Nottingham City Centre – focused on infrastructure to unlock strategic

extensions of the city centre. This includes Southside, which will enable

expansion of the Broad Marsh shopping centre and wider transformation of

the south side of the city centre, expansion of our Creative Quarter, including

the strategic Island site on the south east corner, and place-making on the

north side of the city centre.

Our strategic east-west growth corridor: we will invest to support mixed use

regeneration of the Waterside area in the east of the city and provide

infrastructure to unlock the full potential of our Enterprise Zone on the

western side. All of these investments will be complemented by our Southern

Growth Corridor (existing LTB scheme), transforming connectivity on the

primary east-west axis through the city. Further investments will be made to

unlock our potential, including our Cycling Ambition Package and the LSTF

programme to improve connections between opportunity and need.

Strategic growth priorities across the wider Greater Nottingham area,

including unlocking key employment sites at Gedling (existing LTB scheme)

and Teal Close in Colwick, and Beeston Business Park (part of our Enterprise

Zone), all of which have strong synergies with the city’s Southern Growth

Page 74: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

74

Corridor. We propose packages to unlock housing and employment growth

in Hucknall (including facilitating expansion at Rolls Royce), Gamston to the

south-east edge and at key sites along our A46 Growth Corridor.

In addition, we will undertake a detailed feasibility study to assess the role of

a new fourth Trent Crossing, to be delivered post-2021, to improve orbital

movements and provide longer term capacity for growth on the eastern side

of the conurbation.

Strategic Package: Growing the wider Derby area

Focused on four distinct programme geographies determined by the locations of

key housing, employment and wider regeneration opportunities.

Derby City Centre – the Vibrant City programme includes infrastructure to

deliver the acceleration and increased competitiveness of strategic sites

including Castleward, Friar Gate, and the central business district through

infrastructure to improve accessibility, wider connectivity (strategic transport

networks and faster broadband), and quality of place to ensure that we create

and maintain the conditions for growth in the city.

Southern Derby Area – this programme focuses on enabling key employment

sites including access to Pride Park (existing LTB scheme), Infinity Park and

the delivery of significant housing growth in Derby and the urban extensions

within Derbyshire. Targeted investment for Southern Derby Integrated

Transport Links and site specific interventions such as Osmaston

Regeneration, supported by local accessibility and strategic connectivity

interventions will bring these forward by focusing on opening-up access to

these sites.

Derwent Corridor (from Matlock, through Derby City to Shardlow) –

programme includes Our City Our River, the strategic flood defence project

that facilitates the unlocking of housing and employment sites and makes a

significant contribution to the future competitiveness and long term resilience

of the whole city, complemented by sustainable connectivity interventions and

growth of the visitor economy through the Super Connected Cycling project

along the Derwent Valley World Heritage site.

Strategic growth opportunities in wider Derbyshire – includes infrastructure

targeted specifically at unlocking key regeneration sites including land north

of Denby, access to Drakelow Park, decontamination of Stanton Ironworks

and construction of the Woodville – Swadlincote Regeneration Route.

Strategic Package: Sustained growth and new housing in Mansfield /

Ashfield and North Nottinghamshire

Focused on unlocking strategic employment, regeneration and housing sites to

transform growth prospects in Mansfield, Ashfield and northern Nottinghamshire.

Mansfield / Ashfield – focused on unlocking strategic employment sites along

the A617 Mansfield / Ashfield Regeneration Route (MARR), together with

new housing at key sites. This includes sustainable travel measures focused

on key corridors to create headroom for growth, pinch point improvements at

key junctions and site access improvements.

Worksop and Harworth / Bircotes: a programme of sustainable travel

measures and targeted junction improvements to unlock capacity for mixed

housing and employment in Worksop as part of an A57 growth focus

(including existing committed A57/A60 LTB scheme) and large-scale

employment development on the northern edge of our area in

Harworth/Bircotes..

Strategic Package: Sustained growth and new housing in North Eastern

Derbyshire

Focused on improving connectivity and tackling infrastructure risks to unlock and

Page 75: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

75

accelerate new employment land at strategic sites in Chesterfield and along the

A61 Growth Corridor.

A programme of measures including the (existing LTB committed) Seymour

Link at Markham Vale, a package of improvements to Chesterfield town

centre, and flood management measures on the River Rother to unlock

development land. The existing committed LTB scheme on the A61 at

Whittington Moor will tackle a specific pinchpoint, whilst the wider A61 Growth

Corridor between Chesterfield and Clay Cross will unlock key strategic sites,

including redevelopment of The Avenue site.

Consideration would be given to further infrastructure projects to unlock new

housing and employment land in the area to the east of Chesterfield,

including the Chesterfield Staveley Regeneration Route, and access to

Shirebrook.

Strategic Package: Accelerating housing and employment growth in Newark

Focused on improving connectivity to unlock and accelerate growth in Newark,

building on strong housing demand in this area.

A programme of sustainable travel measures to create headroom for growth

at key sites in Newark East, Newark South and Balderton (to the south east),

supported by targeted pinch point improvements on the road network in and

around the town. There will also be phased construction of the Newark

Southern Link Road, which will provide access to the Newark South growth

area and which is critical to Newark’s future growth.

Lincoln – Newark – Nottingham rail corridor: working with East Midlands

Trains (and Greater Lincolnshire LEP) to increase train frequencies on this

corridor, improving connectivity and supporting a shift to travel by train on this

key regional corridor, which will also support growth in the town.

Strategic Package: Peak District World Class Destination

Focused on supporting the distinctive role of the Peak District, with the highest

quality natural landscapes, enhancing visitor experience and supporting growth in

key towns to strengthen economic diversity and meet housing need.

A range of measures to unlock new housing and employment sites in

Ashbourne, Matlock, Bakewell and Buxton, focused on site remediation or

access improvements. Programmes of measures to improve public realm

and enhance visitor experience in the towns as key gateways to the Peak,

and development of the case to support transformation of Buxton as one of

England’s leading spa towns.

Strategic Package: East Midlands Connectivity

Focused on unlocking the potential of the M1 J23a/J24 / A50 area as the leading

logistics hub in the UK, and ensuring the benefits of HS2 are captured for the

D2N2 economy.

D2N2 LEP will lead a taskforce to develop a strategy to fully capture the

benefits of HS2, bringing together HS2 Limited, LLEP and local transport

authorities. This will include the development of Masterplan for the proposed

HS2 station, to enable early work on infrastructure and a regional connectivity

package to ensure improved connectivity across the D2N2 area and fully

capture the benefits of HS2 for the East Midlands economy.

We will work with East Midlands Airport and LLEP to develop East Midlands

Airport to its full potential, including supporting the development of freight

expansion to new global destinations and increased numbers of passenger

destinations, including primary European cities, transatlantic and Middle East

markets. We will work with EMA to improve sustainable travel options to the

airport, for both passengers and to provide access to new job opportunities.

Page 76: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

76

We will work to maximise the benefits to the D2N2 area of emerging

proposals for Strategic Rail Freight Interchanges in the area. A proposal has,

for example been submitted to the Planning Inspectorate for a major scheme

adjacent to M1 Junction 24, and other alternative potential proposals have

been identified along the A50 corridor.

Strategic Package: Midland Mainline Connectivity

Focused on addressing slow line speed at Market Harborough, which is a barrier to

delivering improved connectivity from D2N2 (and Sheffield City Region) to London.

We will work with Network Rail, LLEP and Sheffield City Region to develop

business case for realignment of track at Market Harborough, before

electrification of the Midland Main Line, and to ensure that connectivity

benefits to the wider MML corridor have been fully captured. We will

proactively support the delivery of the line speed improvement, including

consideration of potential contribution of LGF funding to support the project.

Strategic Package: Feasibility studies for transforming our connections

Focused study work, to be led by D2N2 LEP with partners, to develop longer-term

strategies for transforming our connections to fully unlock our long-term growth

potential.

Development of East Midlands HS2 connectivity package, including options

for through connections to classic lines, heavy rail connections to the

proposed station.

Development of mass transit options, together with masterplanning within

wider Broxtowe and Erewash area.

Further studies to examine opportunities for transformational connectivity

improvements, with an initial focus on orbital movements around the east of

Greater Nottingham, including consideration of the A52 Nottingham Ring

Road and potential options for a fourth Trent river crossing.

Strategic Package: Superfast broadband connectivity across D2N2

Superfast broadband connectivity is crucial to our future economic success. We

will build on current investments through BDUK and other routes through

investments leveraged by the Local Growth Fund to spread connectivity beyond

the current 95% of premises coverage target and to address insufficient speed in

key urban areas. This will minimise digital exclusion and enable, alongside support

for exploiting enhanced digital connectivity, business investment and growth. We

propose to use Local Growth Fund alongside BDUK to further enhance our digital

connectivity.

Impacts and Benefits

We have undertaken robust assessments of the projects included within

the strategic infrastructure packages. Our overall assessment of the

impacts during the six year lifetime of the Local Growth Fund (2015/16 to

2020/21) is set out in the table below.

Headlines (2015-2021 LGF period) from investment in economic infrastructure

Total Project Value (£m): £1,400 m LGF Request (£m): £456 m

Public Match Investment (£m): £355 m Private Investment (£m): £980 m

Jobs unlocked: 20,100

Housing unlocked: 12,800 Leverage: 2.2

GVA unlocked (£m): £806 m VFM (£GVA / £LGF) 1.8

Page 77: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

77

We estimate that our investment in economic infrastructure, facilitated by

Local Growth Fund and other complementary sources, will help unlock

around 20,000 new jobs, 13,000 new homes and around £800 million

additional GVA per annum by 2021. Over the longer term, we forecast

that these interventions will be critical in unlocking much larger numbers of

new jobs and homes in the area. We provide more detail on the numbers

of jobs and houses unlocked in each area within the Implementation Plan.

Delivery

D2N2 partners have a strong track record in delivering transport and

infrastructure projects on time and to budget. All of the authorities have

strong governance and project management processes in place to ensure

that projects are delivered effectively and planned outcomes are secured.

The D2N2 Infrastructure Board, which has developed from the Local

Transport Board, has overseen the development of the SEP economic

infrastructure packages. The identification, appraisal and prioritisation of

packages has been undertaken in accordance with the Treasury and DfT

five cases business case model, which has given detailed consideration to

programme delivery and outcomes. This process is described in detail in

the SEP implementation plan, and gives a high level of confidence in the

deliverability of our proposed programme. The Infrastructure Board will

have continued oversight of the future infrastructure programme, using its

agreed Assurance Framework to ensure the efficiency and effectiveness

of the programme.

Page 78: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

78

Strategic Theme: Housing and Regeneration

Introduction

Our vision is to:

Accelerate completion of new housing to support growth in D2N2,

ensuring this is supported by green infrastructure and multi-modal

solutions to encourage sustainable travel and mitigate the effects of

additional travel in our faster-growing areas.

Why is Housing and Regeneration Important?

An adequate supply of housing is crucial in realising our growth ambitions.

D2N2’s housing mix is a key element of the LEP’s ‘offer’, helping to make it

an attractive and aspirational place to live and work, complementing the high

quality natural environment and helping to attract skilled labour and inward

investment. Housing supply is key to promoting affordability. To realise

D2N2’s ambitions for growth, there must be an adequate supply of housing

which provides the right mix of homes for growth.

In addition to housing’s role in supporting growth in the wider economy, there

is considerable economic benefit to be gained from investment in housing

development. Every £1 invested in house building generates £2.84 of

economic activity based on increased profits and wages for contractors

(direct impacts), for the supply chain e.g. manufacturers (indirect impacts)

and from spending in the wider economy (multipliers)23

, and it is therefore

important that local construction companies are able to access procurement

and development opportunities. There are also benefits in the form of

levered private sector investment in infrastructure and investment in skills in

the form of construction training or apprenticeships.

23

Construction in the UK economy: The economic and social benefits of investment. UK Contractors Group, May 2012.

It is clear therefore that constraints on housing development have the

potential to hold back economic growth. While spatial planning and the

provision of housing is the remit of our local authority partners, D2N2 will

work with them to accelerate development where possible, by helping to

tackle deliverability issues, where it supports our economic growth ambitions.

Opportunities

Delivery of housing

A highly proactive approach to the delivery of new housing and supporting

infrastructure, including an Aligned Core Strategy for the Nottingham area

and close collaboration between Derby City Council and adjacent authorities.

Collaboration with adjacent Planning Authorities in Lincolnshire to meet

strong housing demand in Newark, Lincoln, Gainsborough and Grantham.

Well developed local infrastructure plans, which have assessed the impacts

of new housing and with clearly prioritised interventions to unlock strategic

allocations in each area.

A strong history of delivering regeneration programmes in our priority areas,

both within the cities and the former coalfield areas has developed a skills

pool of experienced professionals and a body of good practice.

A strong evidence base and understanding of the distinctive roles played by

our market towns and surrounding rural areas.

Opportunities to develop public and private sector funding packages to

accelerate delivery, drawing on Local Infrastructure Funding, Large Sites

Funding, Growing Places Fund receipts (in future years) and enhanced

Housing Revenue Account borrowing.

Support skills development, innovation and growth in D2N2’s construction

Page 79: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

79

sector.

Challenges

Constraints to unlocking new housing

Viability is challenging with high development costs and contractor profit

requirements meaning that many potential developments cannot be

progressed.

Sourcing the necessary land for housing development can be challenging

when considering size, location, quality and cost factors.

Low levels of market confidence in the construction sector.

Limited funding available for the provision of affordable homes.

Gaps in funding for infrastructure to support large-scale housing growth in

Derby, Nottingham and Newark, all of which require new access roads into

and within the new communities to ensure good travel choices and effective

integration with the existing urban area.

Overall Scope of Housing and Regeneration Activity in D2N2

A range of public and private sector partners are involved in delivering

housing and regeneration activity across D2N2, although the scale of activity

reduced following the credit crunch and public sector funding constraints.

Partners include:

The Homes and Communities Agency, which will invest some

£102m in land and regeneration and £56m in affordable housing in

D2N2 over the 2011-2015 period;

The local authorities, ALMOs and housing associations who own and

manage the public sector housing stock across D2N2

Private developers, who are taking forward both large and small-

scale developments across the area, and sometimes face

considerable challenges of market viability.

Funding to unlock development has been available from D2N2’s £26m

Growing Places Fund, a loan fund which will generate receipts that can be

invested in further projects in future years. Funds raised through the

Nottingham Enterprise Zone can also be invested in D2N2’s housing and

regeneration priorities.

Our Priority Actions

There are three key areas in which D2N2 will focus its activities in relation to

housing, although we will support our local authority partners in their wider

efforts to accelerate housing development. We are awaiting further

guidance from government on the use of HRA borrowing, and the publication

of a prospectus on the Large Sites fund, and will develop our proposals more

fully once the shape of these schemes becomes clear:

A Key Sites Programme

Using LGF infrastructure funding (and, in future years, Growing Places Fund

receipts) and working alongside HCA, we will administer a Key Sites Programme

to promote the viability and delivery of key sites, particularly focusing on mixed use

sites.

Affordable Homes

We will work closely with local authorities with stock, drawing on enhanced

Housing Revenue Account borrowing to develop new affordable homes in

response to the demand for this stock type.

In addition, D2N2 LEP supports the proposals being developed to re-balance

our outer city estates in order to tackle social problems and bring about

Page 80: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

80

sustainable change. We will bring partners together to tackle the issues

faced by these estates and demonstrate how the economic growth we are

striving to achieve can benefit some of our more challenged communities:

Growth in Communities: Rebalancing Outer City Estates – North Nottingham

Outer city estates throughout England were built with the finest of intentions, often to

re-house working families from Victorian slums or bomb-damaged communities to

garden villages. These mass-developed estates were highly functional with few

pretensions and whilst the results are not all bad, many are far from ideal.

These estates can often feel from another world. Close to the cities but where few

other than residents will go, often, close to the arterial routes to and from the city or

ring road that surrounds. The outer cities estates are often bypassed daily and

residents, other than for work, often rarely venture out. Consequently, they have often

become isolated communities, with families facing significant challenges and

individuals talk of escaping. There is local ambition to create more intimate and

community clusters.

The six estates of North Nottingham parliamentary constituency provide a case in

point. These well-built estates are illustrative of the social and economic imbalance of

the modern UK economy, and it is a story often retold in many similar estates

nationally. These estates have often lost their identity, often following the loss of their

key employers such as in North Nottingham with the loss of Raleigh Bicycles, the

mines and textiles and are at the forefront of the often-mentioned postcode lottery of

services.

One in ten is unemployed; four out of six schools are in special measures with the

lowest number of people going to university in the UK; double the average of single

parent households and free school meals. It is often these communities whose

economic growth is least felt and the austerity measures most hurt. The deadweight

costs of low personal and social skills, poor qualifications and educational levels and

their accompanying social problems are becoming chronic. Urban policy of the past

such as the Urban programme, City Challenge or New Deal for Communities has

sought to target some of these communities but they have been one off projects

rather than part of a long term programme. Another one-off programme will not bring

sustained change. Any further activity must be sustainable and provide a model for

other communities.

Based on the Early Intervention Foundation model founded by North Nottingham

constituency MP, Graham Allen and now operating in 20 pioneering places across

the country, we are keen to begin this process by taking the lead in forming an

advisory council to develop a dedicated and tightly-managed resource to tackle the

key challenges facing outer city estates, using North Nottingham as a founding

example. As soon as our thinking is done, we will propose an organisational model to

get the job done.

An initial roundtable discussion has already enjoyed significant interest from key

players and Members of Parliament, local businesses, Councils, FE and HE

institutions. We have made a point of linking this early thinking to external players

(LSE, RSA, Lyons Review) as well as to central government (DCLG, BIS, Cabinet

Office) since taking this to scale on the back of well-evidenced activity must be a

central consequence of all our resourcing. To continue to develop momentum we are

bringing Michael Heseltine to Nottingham North on 8 April, holding a community

conference on rebalancing on 25 April and a National Conference on 6 June.

The LEP is perfectly placed to use our power of convening to bring local and regional

commitment to the table. The City Council is closely involved as is business and the

community. Graham Allen, the local MP, continues to show his commitment in

bringing the academic, political, national and all-party players to the table.

Nottingham’s creative use of the Local Strategic Partnership model to build the first

“Early Intervention City” which has now gone to scale via the national independent

charity, the Early Intervention Foundation, demonstrates local will and capacity.

Supported by the LEP and other parties, our ambition is to drive forward an active

discourse and policy exchange supported by HM Government.

With the support of Government we intend to publish an exploratory report by Easter

2015 – and seek support for an independent review to HMG. We would hope at that

point to begin a minimum 10-year plan running the full course of 2 parliaments to

show our long term commitment and accumulate investment. There would be clear

annual benchmarks for all to see but the time span would demonstrate our vision for

sustainability and recognise that on a non-greenfield heavily built up site progress

Page 81: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

81

would be practical, incremental and evidenced – not yet another ‘quick fix’.

Much good work already takes place and much is planned. We intend to build on that

but not substitute for it. All partners would be clear that additionality would be our

watchword. As well as this strategic objective, the rebalancing programme will look

to take specific action locally through a number of key attributes contained within the

strategic economic plan and the Nottingham Growth Plan. These include the Phase 2

redevelopment of Basford Hall Campus by New College Nottingham; the

redevelopment of key sites contained within the Nottingham Growth Plan; the

community-led local development as part of the ERDF scheme, the use of small sites

for skills and employment, expanding successful VSO enterprise (Best, Right Track

etc), mapping and pooling public, private and third sector investment and so on.

The rebalancing outer city estates programme demonstrates not only the LEP’s

commitment to growth but also to ensuring that growth reaches out to all

communities. It will provide a best practice, evidence-based example for our area, our

region and for England of how the strategy of a LEP economic plan can both

contribute nationally to detail on urban policy and locally to some of our most

challenged communities.

Page 82: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

82

Governance and Implementation

The Strength of our Partnership

The D2N2 LEP is a business led partnership with the express purpose of

driving economic growth. We are a local partnership not an agency of

government. Our success will depend on the strength and influence of our

partnership.

Our Board has expressed its commitment to the vision and ambitions set out

in this document. The contents were refined following consultation with the

business community, public and third sector partners.

The strength of our partnership is demonstrated in our track record of working

together to deliver projects and programmes across the D2N2 geography,

including the current Growing Places Fund and Regional Growth Fund

programmes. Local Authorities are an important part of the partnership,

represented on our Board and providing accountability for our investments (for

example Nottingham City Council act as the Accountable Body for the

Growing Places Fund) and have put in place arrangements to ensure the

lower tier authorities are represented in all LEP structures.

All our partners will be providing resources which contribute to the aims set

out in this Strategic Economic Plan (see our Headline Financial Proposals),

including significant investment from the private sector.

D2N2 Proposed Governance Arrangements

In recent months, the D2N2 LEP has made rapid progress to strengthen its

governance structure, which provides for effective, timely and business-led

decision-making by the Board, Skills Commission and Local Transport Board.

New Joint Committees in Derby / Derbyshire (‘D2’) and Nottingham /

Nottinghamshire (‘N2’) are now in place and greatly strengthen the democratic

accountability and inclusiveness of the LEP’s operation. The Joint Committees

are written into Council Constitutions and will act as the D2 and N2 local

authority decision making bodies for strategic economic development

ensuring inclusive and co-ordinated strategic and investment prioritisation by

local authorities within the LEP’s governance structure. With meetings held in

public, the Joint Committees enhance transparency and ensure that local

knowledge underpins decision-making.

The Joint Committee arrangements are continuing to develop and to

maximise opportunities presented by the Local Growth Fund, D2 Joint

Committee has agreed to undertake a governance review to progress an

Economic Prosperity Board with a view to submitting a Scheme to

Government in early 2014/15. This work is a clear demonstration of continued

commitment in the LEP area to further strengthening local accountability and

decision-making.

The governance structure for the LEP is shown in the diagram below.

Proposed Governance Structure

Sector

Forums

Local Transport

Board /

Infrastructure

Board

Skill and

Employment

Commission

D2N2 Board

D2 Joint

Committee

N2 Joint

Committee

Under the Governance Framework;

The D2N2 Board is responsible for setting the overall strategy for the

LEP, including the development of SEP priorities, performance

management and oversight and endorsement of strategic projects as

Page 83: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

83

well as monitoring expenditure and outputs across the D2N2 area.

The Board will act as the strategic lead for management of EU Funds

and the use of Local Growth Funds (and any other monies under the

control of the LEP). The D2N2 Board will pursue growth opportunities

with greatest benefits to the D2N2 area and minimise complexity for

applicants and deliverers. The D2N2 Board will use the Local Growth

Fund to maximise its impact in delivering the LEP’s Strategic

Economic Plan. The D2N2 Board will maintain a lean and flexible

governance structure and draw directly on the support of the D2 and

N2 joint committees and other groups with the LEP’s governance

structure, such as the Local Transport Board and Skills Commission,

and sector groups. The Board will delegate decision-making or

collaborate with other partners as necessary to most effectively

deliver the SEP. The D2N2 LEP, working with the D2 and N2 joint

committees, its Local Transport Board, Skills Commission and with

the input of the Accountable Body, will

take decisions about what is funded from the Local Growth

Fund, when it is funded and how it is funded

pursue a balance of commissioning and calls for projects with

a blend of collaborative, LEP wide and local programmes and

activities, as determined by the outputs and outcomes sought.

undertake strategic assessments of applications, programme

or project proposals, expressions of interest or any other

relevant application for Local Growth Funding

oversee and manage the performance of the programme and

delivery partners to ensure that the programme meets its

performance criteria.

review the overall direction, governance and delivery of the

programme to ensure that it remains responsive to local

needs and opportunities.

A single Local Authority will be the ‘Accountable Body’ on behalf

of the partnership for the Local Growth Fund. It will receive and

technically appraise applications and, as they will be accountable to

Government for spend, sign off the technical compliance of any

projects or programmes endorsed by the LEP for support. The

Accountable Body will recharge its costs to the LEP through a Service

Level Agreement and may require the agreement of a risk sharing

protocol with other local authorities in the partnership. The D2N2 LEP,

not the ‘Accountable Body’ will take the strategic lead in delivering the

D2N2 programme. This role includes identifying the priorities,

activities, schemes, programmes and projects that best meet the

economic needs and ambitions of the D2N2 area and will deliver the

goals of our Strategic Economic Plan.

In order to ‘hardwire’ the D2 and N2 strengthened Local

Governance arrangements into the LEP, they will be represented on

the D2N2 Board and its sub-committees - Skills and Employment

Commission (via the ESB), Local Transport Board / Infrastructure

Board, and sector forums.

These sub-groups are tasked with identifying local priorities and

prioritising investment plans within their areas including pooling

appropriate local resources to ensure a more effective approach to

economic growth. D2N2 LEP will promote and monitor geographic

equity in spend and benefits from the programme across the LEP

area and between the Joint Committee areas. In addition, it is

envisaged that a significant proportion of the Local Growth Fund

including ESIF funding will be nominally allocated to both

Committees. Furthermore, where required, they may also act as

delivery routes for some elements of the activity and will also be an

important source of match-funding for economic growth projects

across the LEP area.

Where governance changes in future, provision will need to be put in

place, including how they work with the LEP sub-committees on

agreeing clear recommendations for interventions and projects to

Page 84: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

84

deliver the SEP priorities, providing close knowledge of local

investment needs

The Skills and Employment Commission, Local Transport Board

(soon to become the Local Infrastructure Board, with a wider remit)

and Sector Forums will have an important role to play in ensuring a

co-ordinated approach to each of D2N2’s strategic themes and

priority sectors, and will provide advice to the Board on maintaining

appropriate strategic direction within each of the themes, as well as

steering investment priorities. They will ensure a collaborative

approach is maintained across the D2N2 geography and champion

the strategic interventions needed to accelerate economic growth in

the D2N2 area. In general, it is anticipated that the thematic and

sectoral groups will be invited to;

advise the Board about priorities, capacity, sources of match,

routes to market and other issues relevant to their area of focus.

support the development of tender specifications and

procurement approaches

where appropriate advise on strategic appraisal of potential

investments and oversight of delivery

Ensure that proposed new activity does not duplicate and is co-

ordinated with existing projects, services, networks and initiatives

in order to maximise additionality

Relationship with the Accountable Body

The D2N2 LEP, encompassing all the bodies and groups within its

governance structure, will work closely with the Accountable Body to ensure

that its delivery of the SEP is compliant with all relevant regulations. The

division of responsibilities between D2N2 and the Accountable Body is

summarised below;

The D2N2 LEP Accountable Body

1.Strategy Develops and agrees the Strategy and Delivery Programme for its LGF allocation

Holds the LEP’s LGF allocation

2. Structures and Processes

Establishes structures and processes to take the strategic lead in implementing the strategy

Advises D2N2 to ensure that its structures and processes are technically compliant

3. Procurement Agrees the strategic criteria for funding decisions

Issues ITTs and calls for projects

4. Assessment / Appraisal of applications

Assesses the strategic impact of applications

Undertakes technical compliance appraisal on all funding applications

5. Decision (strategy)

Endorses applications according to their strategic impact.

Will not fund anything that has not been endorsed by the LEP

6. Decision (compliance)

Will not endorse anything that is not technically compliant

Will not fund anything that is not technically compliant

7. Contract Issues contracts

8. Monitoring and reporting

Monitors strategic impact and performance

Monitors technical compliance with contract. Reports regularly to LEP.

Delivery and implementation arrangements will evolve over time in response

to evolving market conditions, performance monitoring, capacity and evolution

in governance and organisational structures. The LEP will undertake a formal

mid-term review of governance in 2016/17

Capacity

To ensure that the D2N2 Programme is delivered effectively, its strategic

impact maximised and implementation processed efficiently but with due

robustness and speed, D2N2 will seek to draw on resources provided by the

Local Growth Fund. D2N2 will formally request 2% of the overall level of Local

Growth Fund to provide the relevant capacity to D2N2 and partners. D2N2 will

continue to draw on the time, skills and expertise of its many partners.

Page 85: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

85

Our Approach to Overlapping Areas

The northern part of the D2N2 area overlaps with Sheffield City Region, with

Bassetlaw, Bolsover, Chesterfield, Derbyshire Dales and North East

Derbyshire covered by both LEP areas.

Our approach to the overlap area is based on the following principles:

they should be neither advantaged nor disadvantaged by overlap

status

access routes and information for potential applicants and

beneficiaries of funded services should be straight forward – with a

no ‘wrong door’ approach

The D2N2 SEP applies in full in the overlap area

There is no D2N2 spending ‘ceiling’ in the overlap area.

We work closely with colleagues from Sheffield City Region LEP and officers

in the ‘overlap area’ and have a shared understanding of the economic

issues they face and opportunities they offer. To promote synergy, additional

impact and efficiency in the use of the Local Growth Fund and EU SIF funds

in the overlap areas, the D2N2 and Sheffield City Region LEPs will adopt the

principles of open communication, the sharing of information and a culture of

‘no surprises’. The two LEPs will endeavour to align approaches to

commissioning, implementation, promoting social inclusion and routes to

market for the delivery of business support services in the overlap area. Full

District representation on the Joint Committees enables full participation of

the relevant authorities in the overlap area in both LEPs.

City Deal Relationship

The D2N2 partnership and our local economy benefit from the additional

freedoms and flexibilities available in Nottingham, secured through its City

Deal and arising from Nottingham’s Core City status. Extending the success

and benefits of the City Deal across the wider LEP area would accelerate the

contribution of the whole local economy to national economic recovery. The

SEP Growth Deal process is an excellent opportunity to understand what

has worked most effectively in the Nottingham and other City Deals and

identify freedom and flexibility requests to bring greater economic benefits to

the whole D2N2 area, including the Core City of Nottingham. We support

the Core City freedoms and flexibilities request and, as a Core City LEP,

have incorporated these in our request (set out in the following section). We

would hope to see these extended across the LEP area.

Implementation

Our approach to implementing the SEP is set out in the Implementation Plan

which accompanies this document, which provides more detail on the

programmes of activity we will deliver, and the funding streams we will draw

on. Here, we summarise our plans for programme and project prioritisation;

programme and project delivery; ensuring value for money; and match

funding.

Programme and Project Prioritisation

To help us identify the programmes and projects that will make the greatest

contribution to achieving our vision, we have developed a robust and

independent appraisal framework. There are four underlying principles

which provide the foundations for our appraisal of all types of projects:

1. Strong strategic alignment

2. Excellent value for money

3. Additionality as a prerequisite (including continuing existing support

that might otherwise be lost)

4. Deliverability

The framework consists of a set of core principles that apply to all types of

projects and every funding stream, but can be tailored to appraise specific

Page 86: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

86

types of programmes or interventions, e.g. housing, skills and transport

schemes which may not result in direct economic impacts.

To date, the focus has been on appraising potential economic infrastructure

projects. Detailed guidance was developed and provided to partners to

support the development of high quality projects and programmes and

strengthen the transparency of the system.

The appraisal process (scoring and review) has been carried out by

independent consultants, reporting to the LTB. The involvement of

consultants brings a degree of independence and gives confidence that the

appraisal process is not open to undue influence.

In the longer-term, the appraisal framework will support both a

commissioning and an open bidding approach to project identification and

selection.

The LEP Board will review and approve (or amend) the appraisers’

recommendations on a regular basis.

Value for Money

The LEP Board have stressed that they wish to focus the investment under

their control on areas where it will have the greatest impact. Value for

money is therefore a key element of the deliverability criteria within the

appraisal framework. Drawing on evidence from evaluations of previous

successful interventions, the appraisal framework contains benchmarks for

each type of intervention against which all programmes and projects will be

assessed before funding decisions are made.

Cross-Cutting Themes

Our Strategic Economic Plan sets out our approach to promoting and

inspiring economic growth across the D2N2 area, to ensure the LEP can

make a greater contribution to the success of the UK economy overall. We

recognise that the economic growth we achieve must be sustainable, and

success today must not be at the expense of future generations.

We also recognise that economic growth is not an end in itself, and to be

truly successful growth must be ‘good’ growth that provides all our residents

with access to the opportunities to lead productive and rewarding lives. We

want to ensure that our SEP has positive environmental and social impacts,

and that any negative effects are minimised.

Sustainability and Rural Issues

We recognise the value of D2N2’s high quality environment to economic

growth, not only in areas such as the Peak District where the economic value

of the landscape is widely accepted, but also in terms of the green and blue

infrastructure throughout the area. We have used Natural England’s Local

Environment and Economic Development (LEED) toolkit to ensure that our

Strategic Economic Plan capitalises on the growth opportunities offered by

the environment; whilst safeguarding its existing quality and contribution to

the high quality of life in D2N2.

Social Inclusion

Similarly, D2N2 LEP is working closely with ONE East Midlands to develop a

Social Inclusion Framework / Strategy for the LEP. We work closely with

them to ensure that the implementation of the SEP has positive social

inclusion benefits and supports our aim of ensuring that all residents have

access to economic opportunities.

Programme and Project Delivery

Programme delivery mechanisms will be developed by the LEP once the

broad shape of the programme has been agreed with Government and

partners. A balanced approach of commissioning and calls for projects is

suggested including:

Page 87: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

87

Competitive Bidding Rounds – with organisations invited to submit

outline bid proposals against specified SEP priorities

Direct Commissioning of Specific Activities – to deliver agreed

interventions

Local delivery – devolution to local areas to deliver in agreed areas

of intervention

Where competitive bidding rounds are used, there is a strong case for an

Expression of Interest stage to filter out weak or under-developed proposals

and projects (as has been used in our selection of economic infrastructure

projects to be included in the Implementation Plan). This will be important in

ensuring that partners do not waste time and resources developing projects

which are unlikely to be successful or do not fit with the LEP’s strategic

priorities. The expression of interest phase will be a rigorous initial process

designed to ensure that only the strongest proposals are taken forward for a

full appraisal.

Performance Management

The Implementation Plan which accompanies this Strategic Economic Plan

sets out our proposed performance management framework, through which

the Board will monitor progress towards our one over-arching target – to

create an additional 55,000 private sector employee jobs in the D2N2 area

by 2023.

As well as monitoring progress towards this jobs target, we will set targets for

each of our five strategic themes, monitoring progress towards the strategic

objectives set out in the Implementation Plan using indicators agreed with

our partners. We will draw on the set of key economic measures identified in

our Strategy for Growth, against which performance is being tracked:

D2N2 Key Economic Measures

GVA per FTE, £ Business 3 year survival rate

Employment rate, % % of working age pop. L4+

Private sector job creation % of working age pop. L3+

Unemployment rate No. of apprenticeship starts

Business start up rate

Each LGF-funded project will be subject to comprehensive monitoring and

performance management, with a set of key performance indicators agreed

as part of the contracting process and project sponsors held to account for

progress against these indicators.

Evaluation

Evaluation will be an important part of our approach to performance

management, and will be proportionate to the level of investment being

made. Our Implementation Plan contains our proposals for evaluating the

investment made through the SEP, and in particular that funded through

LGF. More detailed proposals for programme, theme and project level

evaluation will be developed once the scale of the LGF programme is known.

However, it is our intention to commission formative and summative

evaluations of our key interventions, in order to inform both future strategy

development and decisions on the future allocation of resources.

Page 88: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

88

Headline Financial Proposals and Match-Funding

Introduction

This section sets out our financial proposals and the sources of investment

that will be used to deliver our SEP priorities. We also identify the level of

funding we are seeking through the Local Growth Fund, and how we

propose to use this alongside other investment being made by our private

and public sector partners to address market failures and accelerate

economic growth.

Investment in Economic Growth in D2N2

The table opposite shows the key sources of finance that will support

economic growth in the D2N2 area during the 2015/16 to 2020/21 period.

Given that the most recent Comprehensive Spending Review covered only

2015/16, there is considerable uncertainty about the availability of public

sector finance beyond this point, with the majority of partners unclear

about their budgets beyond 2015/16. However, the figures in the table

represent our best current estimate of the funding that will be available.

As can be seen from the table Local Growth Fund, whilst significant,

makes up only a relatively small proportion of the overall total. It will

however play a critical role in increasing the overall scale of investment in

growth, by leveraging other funding, particularly from private sector

investors and developers. LGF funds will be particularly important in

relation to transport connectivity and economic infrastructure investment.

Anticipated Key Sources of Finance, £m

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 Total

BIS1 1.0 1.8 2.4 2.4 2.1 2.1 11.7

TSB2 11.0 11.0 11.0 11.0 11.0 11.0 66.0

ERDF 9.0 16.0 22.0 22.0 19.0 18.9 106.9

ESF 12.0 16.0 20.0 20.0 20.0 18.9 106.9

BIG Lottery3 1.8 2.4 3.0 3.0 3.0 2.8 16.1

DWP match 2.4 3.2 4.0 4.0 4.0 3.8 21.4

HCA4 25.0 25.0 25.0 25.0 25.0 25.0 150.0

EAFRD5 0.5 0.9 1.3 1.3 1.1 1.1 6.1

Local Authorities6 102.0 102.0 102.0 102.0 102.0 102.0 612.0

HE 7 92.0 92.0 92.0 92.0 92.0 92.0 552.0

FE8 24.0 12.8 1.4 0.0 0.0 0.0 38.2

EZ uplift9 2.9 3.2 4.0 4.3 5.1 5.6 25.1

LGF 148.7 132.5 101.8 101.8 101.8 101.5 688.1

Total 432.3 418.8 389.9 388.8 386.1 384.6 2,400.4

Notes

1 – includes MAS, GA and UKTI opt-ins

2 – estimated, based on reported investment in 2012

3 – BIG Lottery match to ESIF funds only

4 – estimated, based on current levels of expenditure in D2N2 area

5 – profiled as per ERDF

6 – estimated

7 - Assumes current scale of activity continues

8 – Match to FE capital investment only

9 – Forecast produced for D2N2 LEP by Gleeds

Page 89: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

89

The Derby, Derbyshire, Nottingham and Nottinghamshire Local Authorities

are already investing significant resources in economic development and

related services, including planning and transport activities.

Investment in our Strategic Themes

The table below shows estimated total investment in each of our four

strategic priorities over the next five years. The European Structural and

Investment Funds will make a significant contribution to the business

support and access to finance, and innovation priorities.

Investment in Strategic Themes (all sources)

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 Total

Business support and A2F 18.6 22.9 26.6 26.6 24.7 24.7 144.1

Innovation 74.4 77.1 79.4 79.4 78.3 78.2 466.8

Employment and Skills 93.2 77.2 72.4 71.0 71.0 69.2 454.2

Economic infrastructure 214.7 201.6 170.6 170.6 170.2 170.1 1,097.8

Housing and regeneration 23.3 31.6 32.4 32.7 33.5 34.0 237.0

Total 424.2 410.5 381.4 380.3 377.7 376.3 2,400.4

Local Growth Fund

Resources from the Local Growth Fund will allow D2N2 to accelerate its

plans to support economic growth. We propose to use the funds to

support activity that is broadly in line with that supported by each

Department providing funding during 2015/16 (e.g. funds from DfT will be

used to finance economic infrastructure investment, whilst funds from the

Skills Funding Agency will support our employment and skills activity).

Discussions about the allocation of funding in future years will continue as

the levels and sources of funding become clearer.

Investment in Strategic Priorities – Local Growth Fund

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 Total

Business support and A2F 3.0 3.0 3.0 3.0 3.0 3.0 18.0

Innovation 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Employment and skills 35.0 24.8 26.0 26.0 26.0 25.7 163.5

Economic infrastructure 110.7 96.7 64.8 64.8 64.8 64.8 466.6

Housing and regeneration 0.0 8.0 8.0 8.0 8.0 8.0 40.0

Total 148.7 132.5 101.8 101.8 101.8 101.5 688.1

Future allocations will depend to some extent on the LEP’s track record in

spending the 2015/16 allocation within the 2015/16 financial year, and we

have tested the deliverability of all our proposed priority actions.

Outcomes Resulting from LGF Expenditure

D2N2 LEP is strongly committed to the delivery of key outcomes from

public sector investment for growth and we will monitor and report publicly

on progress. Our over-arching target is the creation of 55,000 new

privates sector employee jobs, and we will also track the number of

businesses assisted, and estimate the level of GVA created through new /

additional jobs. Based on our current programmes and interventions, we

believe we can achieve the following outcomes through our investment of

LGF.

Expected Outcomes resulting from LGF expenditure, 2015/16-2020/21

New jobs 21,750 Business supported 900

Additional GVA £870,000,000 New houses 12,800

Page 90: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

90

Freedoms and Flexibilities

Our Growth Deal with Government won’t is not just about funding. We will

ask for freedoms and flexibilities to accelerate the pace of economic

growth in D2N2, and make a greater contribution to national economic

recovery. As a Core City LEP we fully support the freedoms and

flexibilities requests proposed by the Core Cities, and would wish to see

these extended across the LEP area. We have grouped our requests into

five broad categories and look forward finalising our Growth Deal with

Government.

1. Innovation-Led Economic Growth: Leveraging our Key OEMs and their Supply Chains

Our aim is for accelerated economic growth in D2N2 supported by locally

tailored interventions shaped to meet the needs of our economy.

Our asks include;

A University Enterprise Zone in Nottingham to accelerate the development of

high-technology, innovative and growing businesses through accessing our

world class University expertise.

Stronger partnerships with key government agencies providing business

support including

with TSB and BIS to provide tailored innovation support: including

exploring the potential to develop a business case for the UK’s first

high performance computing centre, ensuring university and college

funding is more closely related to local economic needs, and

supporting D2N2 to develop the local supply chains of our major

OEMs.

with UKTI: to develop locally sensitive trade support packages

including support for targeted Foreign Direct Investment relating to our

OEMs / their supply chains. We would wish to be involved in full

collaborative account management with UKTI for the OEMs and their

local suppliers.

with Manufacturing Advisory Service and Growth Accelerator so

that their provision can be tailored to the needs of the local economy,

particularly through joint development with BIS of the specifications for

the re-tendering of both programmes

Regional Growth Fund: Extension and flexibility of D2N2 RGF funding and

programmes to 2017.

Changes to our EZ designation: We request Enterprise Zone local envelope

determination, to enable us to flex our Enterprise Zone sites to respond to

changes in local priorities which have the potential to impact negatively on the

resources available to the LEP to invest in economic growth in future years,

within the existing envelope agreed with HM Treasury.

Greater influence over the national funds dedicated to supporting our key

sectors including more joint working with Visit England and DCMS, and control

over Visit England’s resources within the D2N2 area, to deliver our ambitions for

the visitor economy based on D2N2’s strong cultural and leisure offer, ranging

from magnificent stately homes to a world class cycling offer.

Enable firms in rural areas to thrive and grow though tailored support by

securing the commitment of Defra to work with us to establish Rural Growth

Partnerships, taking forward the strongest elements of the Rural Growth

Network pilot proposals. The partnerships would support rural areas to play a

full role in the economic success of D2N2, through a package of support

covering not just business but also housing and rural development.

Reducing the administrative burden associated with business support

projects: We wish to request that the Government does all it can to reduce the

ERDF administration and audit burden which can be an impediment to using this

Page 91: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

91

funding stream, and also request that high level innovation-related training can

be funded through ESF (see Skills Deal request)..

2. Accelerating Commercial and Residential Development

Our aim is promote sustainable growth and economic rebalancing through

providing greater local control over the methods and budgets to

accelerate commercial and residential investment and development.

Our asks include;

10 year Transport Funding allocation: in order to promote long-term planning

and provide greater certainty, we wish to request that the Government provides

D2N2 with a 10-year transport funding allocation, providing local partners with

the opportunity to develop strategically-important transport schemes. In line

with the Core Cities request, we would wish to see extended powers to regulate

public transport networks extended across the LEP.

EZ Capital Grant Funding for Medipark: Capital Grant funding will allow us to

accelerate development at the Medipark site and deliver significant private

sector investment and employment. We have received in principle approval for

£5.5m of EZ Capital Grant funding and wish to see this confirmed as quickly as

possible so that works can begin on site.

Assisted Area Status designations: we request that BIS incorporate into the

final maps three of the four wards in D2N2’s submission that were not included

in BIS’ proposed map (Hucknall East, Boughton and Ollerton), and wish to

highlight the request of South Derbyshire District Council to include Hilton ward

in the map.

A flexible Accelerated Capital Investment pot: in our proposals for 2015/16,

we have prioritised projects which can make a direct and early contribution to

our targets of increased jobs and more housing. We believe that capital

investment in innovation (in the widest sense) is critical to the business

competiveness and export potential of a number of D2N2’s (and the UK’s) key

sectors, and is closely linked to the national priorities of the TSB and the eight

great technologies. These investments will deliver medium to long term returns

for UK plc and we would like to discuss a more sophisticated investment

approach which does not solely rely on immediate returns, and the

establishment of a flexible capital investment pot which would enable us to

accelerate capital investment in such schemes.

A Step Change in the Rate of House Building in the D2N2 area: We support

the Core Cities’ proposals to deliver more and better housing, and would wish to

see the proposed changes to tax and incentive regimes extended across the

LEP area

We would like to see a Joint Core Cities Housing Investment Board and

single housing investment plans with measures and programmes co-designed

between Core City LEPs and the Homes and Communities Agency.

We request changes to tax and incentive regimes to make key sites more

attractive to investors. To support this we would like to see:

Incentivisation of private sector house building;

Tax breaks for Brownfield Development Zones to get more housing in

sustainable locations;

Government working with D2N2 Local Authorities to shift public

spending from housing benefits to building more affordable housing;

Guarantees to support more private rented sector house building;

Reform of new homes bonus to create a level playing field for urban

housing sites

Lift HRA debt cap: we request that Government goes further than the

announcement in the Autumn Statement 2013 and allows D2N2 housing

authorities to borrow against HRA assets to allow them to invest in additional

housing in their areas. This building programme could also support the delivery

of construction training and job opportunities.

Better Digital Infrastructure:

Speed Up Broadband Delivery – We call on Government to work with

Core Cities’ LEPs and the EU to influence and overcome barriers that

Page 92: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

92

prevent or slow down investment in Broadband, and to find ways of

accelerating delivery of ultrafast Broadband.

Research and Development test beds for ultrafast open

broadband to be supported by: the alignment of TSB and research

Council spend to maximise the value from these networks; an

extended ‘cloud voucher’ scheme to allow SMEs to access this test

bed; a commitment to scale up the test bed infrastructure to city region

level; further work to understand the potential of the ‘smart-city’ concept

in delivering economic growth.

Any future central Government funding related to broadband be devolved

to the D2N2 LEP and included within its Single Local Growth Fund allocation.

Government support for the inclusion of investment in broadband as a priority in

the D2N2 EU SIF Strategy is also requested.

3. The D2N2 Skills Deal

Our aim is for local businesses and residents to have ready access to the

skills they need to thrive through a local skills ‘system’ that responds

directly to local needs and opportunities.

Our asks include;

Agreement of a Skills Deal: with the Skills Funding Agency / Department of

Work and Pensions, to align resources around the skills priorities identified in

D2N2’s Skills Strategy for Growth, improve economic competitiveness and

provide us with greater influence over the skills, employment provision and

support and careers guidance provided in our area. Our ask here is aligned with

the proposal put forward by the Core Cities, and includes the roll out of a

sustainable Apprenticeship Hub model across D2N2; stretch targets to increase

the number of apprenticeships and incentive payments to increase traineeships;

influence over Careers Service provision within D2N2 and the use of National

Careers Service branding where appropriate; development of a portfolio

approach for JSA and ESA claimants to demonstrate to employers that they are

ready for work; and for us to shape what is commissioned locally when the Work

Programme contracts are re-tendered in 2015. Full technical details of our asks

are included in our draft Growth Deal.

D2N2 to become a pilot area for the inspection of employability skills

provision within the Ofsted framework for schools, to support our development

of a D2N2 Employability Framework and local Charters..

D2N2 to be the location of the HS2 College: The D2N2 economy, its

businesses and expertise, will be crucial to the success of HS2. We propose

that an HS2 Skills Academy should be established within the D2N2 area to

ensure a sufficient supply of appropriately skilled workers is available as project

implementation begins.

Additional capital funding to secure a new Nottingham Skills Hub: our

plans for Nottingham Broadmarsh are ambitious and have been endorsed by

our FE leaders, who recognise the transformational effect the development will

have on skills attainment within the city and beyond. In order to deliver them,

we will need additional capital funding, as well as early investment in

masterplanning and development work.

Maximise the potential to use ESF to fund higher level skills projects. The

development of higher level skills (L4+) in the workforce in the context of

innovation, workforce resilience and career adaptability are a priority for D2N2.

We wish to request that the Government does all it can to make higher level

skills ESF projects viable including the development of an eligible flat rate

indirect cost for HE and an eligible element of private sector match funding for

higher level workforce development and graduate internship projects.

4.HS2 and East Midlands Connectivity

Our aim is to collaborate with Government and key partners to sustainably

realise the economic potential of our key connectivity hubs.

Our asks include;

Government support / participation in the East Midlands Hub task force:

working with Leicester and Leicestershire LEP, we will establish an East

Page 93: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

93

Midlands Hub Task Force, to ensure the proposed developments linked to HS2

and East Midlands Airport deliver the maximum possible economic benefits and

ensure interconnectivity of the Hub with the three cities, wider D2N2 area and

east-west connections. We request Government support / participation in this

task force and consideration of innovative mechanisms to facilitate the provision

of the required infrastructure.

A funding package to achieve HS2 connectivity enabling areas in D2N2,

particularly in the East, West and North of our area, to realise the full economic

benefit of the HS2 hub.

An early commitment to build HS2, in full, supporting the recommendations

within the Higgins Report “HS2 Plus”, with an accelerated timescale to deliver

both stages simultaneously.

A dedicated revenue fund to establish the feasibility of key economic

infrastructure and connectivity investments.

In line with the Core Cities’ requests, we would wish for a formal role for D2N2 in

agreeing aviation strategies.

5. Fiscal, Financial and Other Freedoms

Our aim is to have greater local control over public funding so that we can

join up spending and plans to get better results for our economy and

communities. International evidence suggests that there is a strong

relationship between places that enjoy greater control over money and

policies and successful economies.

Our asks include;

LEP Management Capacity

We request 2% of the overall level of Local Growth Fund to provide the

relevant management capacity to D2N2 and partners. D2N2 will

continue to draw on the time, skills and expertise of its many partners

in delivering its LGF programme.

Fiscal Devolution

D2N2 authorities to be able to keep a larger share of the taxes raised

from their patch.

Government to implement the London Finance Commission findings,

devolving property taxes to D2N2 authorities. D2N2 able to set other

smaller local taxes, e.g. hotel room tax, and explore other taxes having

a local element, e.g. VAT and income tax.

Local Flexibility Over Spend

Multi-year budget settlements for local authorities tied to length of

parliaments.

All Government funding for a specific purpose to be placed into a single

fund and spent according to Single Local Plans that are agreed

between Government and the Local Authority.

Increased local control over public spending to drive reform through

‘place-based settlements’ for revenue funds (including for Health and

Social Care Integration and Skills and Labour Market Agreements).

Extend the Single Pot approach for capital funds.

Business Finance

Review whether a ‘Local Investment / Business Bank’ would help

increase the business investment focus across Core Cities’ LEPs,

particularly for SMEs. This could be explored across all Core Cities’

LEPs.

Venture capital funds administered by local financial institutions e.g.

Business Banks.

More Efficient and Cheaper Energy:

Control over Energy Tariff Prices and Taxes: Core Cities’ LEPs would

like the freedom to set the Tariff Prices on the energy they produce,

and reinvest more taxes from energy production.

Greater powers to organise infrastructure plans with Utility companies,

Page 94: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

94

and to hold to account the utility generators, transmission services and

distributors across our area. .

Cities should be the prime delivery partners for Energy Company

Obligations funds in our areas.

Page 95: D2N2 Strategic Economic Plan

D2N2: The UK’s Most Inspirational Postcode – Final – VERSION FOR SUBMISSION TO GOVERNMENT

95